Property professionals are divided over the Bank of England's assertion that British house prices have reached unsustainable levels.
Governor of the Bank of England Mervyn King recently said the ratio of house prices to earnings was above levels most people considered sustainable.
'There are some early signs, from surveys, of a slowdown in the housing market. After the hectic pace of price rises over the past year, it is clear that the chances of falls in house prices are greater than they were,' he said.
According to the National Association of Estate Agents, prices increased last month, up 2.25 per cent on April. They are 12.55 per cent higher than this time last year.
But Hamptons International sales director David Adams said prices in central and southern England had started to fall because they had risen too fast earlier this year.
'The 8.2 per cent rise in prices between January 1 and May 30 was too much for a four-month period. Therefore, there will be a 3 per cent fall in June and July. This is happening now. In September, October and possibly November, prices may go up 1 or 2 per cent if supply is down, or stay level if there is no shortage,' Mr Adams said.
