THE Bank of England may have made the predicted move of increasing interest rates last week - but a health check on the Basingstoke residential property market holds some good news.

National statistics show that house prices are still rising, but they are not racing away in the borough. In fact, they are holding steady on most rungs of the property ladder.

Estate agents do not expect the new interest rate of 3.75 per cent to have an impact on the market. Many home-owners are on fixed rate mortgages and new buyers still have the benefit of the lowest rates in years.

The move by the Bank of England was the first increase for four years and the bigger problem facing potential buyers in Basingstoke is that the stocks of homes on estate agents' shelves are running low.

Nicholas Rowe, sales manager at Bradford and Bingley Poulters, said: "It was a very busy summer which continued through the traditionally quieter month of August and kept going through the autumn and the fine weather.

"The summer activity brought about a drought of properties, but viewing levels from potential buyers were maintained.

"With Christmas looming, activity is dropping. However, those who are viewing definitely want to buy and there are signs that stocks are now being replenished."

Kevin Penfold, a founder of Barons estate agents, believes some of the shortage of new instructions was caused by people waiting to see what would happen to interest rates.

However, he stressed: "Prices are stable and there is no sign of the situation changing, which is good for the market."