National property specialist Strutt & Parker predict a cooling-off in the mainstream housing market as a result of the Bank of England's decision today to raise interest rates by 0.25 per cent, to 5.5 per cent. But the country house market, in which the Firm is a leading player, is unlikely to be affected.

'This rise in interest rates by a quarter point will further stretch affordability levels within the market and is likely to have a cooling effect on the mainstream market,' says Michael Fiddes, Head of National Estate Agency. 'However, there is still an imbalance in supply and demand, which continues to drive prices upwards in this sector.

'The driving forces at the top end of the country house market are very different; here interest rate movements have less effect on the market. There is still a significant shortage of country houses coming onto the market, so buyers are paying premium prices for the right property; this sector shows no sign of cooling down.'