LONDON-International agent FPD Savills has rejected claims that the London and South East residential market is about to plunge into recession, saying that there are far bigger issues to look at.

'What we are seeing is a tail off in the incredible rise in capital values in the region, which obviously cannot go on forever,' says FPD Savills' chief analyst Yolande Barnes. 'The important thing to look at is the number of people who are finding themselves locked out of the housing market.'

Increased growth in housing prices as recorded by Nationwide, one of the country's biggest mortgage lenders, means that up to 56% of households in Greater London can no longer afford to get on the housing ladder for property priced at £75,000 or more.