TODAY'S interest rate rise of a quarter of one per cent will help stabilise the economy, according to property professionals in the South East.

The Royal Institution Of Chartered Surveyors says the Bank of England's gradual approach to raising interest rates will maintain stability of the economy over the medium term.

The institution says there are already initial signs that recent rate hikes and cautionary comments from the Bank are cooling the housing market.

Trevor Hines, director of RICS South East, said there is little need for "shock treatment" for consumers, as this would hit other parts of the economy.

Rate rises have had only a muted impact on consumer spending so far as the overall economy is encouraging people to feel secure in their jobs.