The most recent suggestions of a downturn in the property market came from aleading economic consultancy, Cambridge Econometrics, which estimated thatthe average price of a London house is almost five times the annual incomeof the average household in the capital compared with a ratio of three toone in 1996.

Ratios of house prices to income or earnings are an important benchmark toeconomists and Cambridge Econometrics has questioned whether the boominghouse prices in London and the south east are sustainable, prompting fearsof the market collapsing as it did at the end of the 1980s.'The housing market is far more complex and robust than it was a decadeago,' said Jarman. 'There is a lot more equity going into house purchase andsustained low interest rates continue to have a dramatic effect onaffordability.'

However, FPD Savills has detected signs of a slow down in price growthduring London and the south east as a result of increasing property supplyand more price sensitive demand. 'But there are no signs yet of any fallingdemand,' said Jarman.