There is more evidence today of a summer slowdown in sales and price growth with one leading London agent calling the top of the market.
Data from Hometrack shows that house prices increased 0.5 per cent during May, slightly less than rises recorded in each of the past three months.
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The proportion of postcode districts throughout England and Wales seeing price increases during the month slipped from 50 per cent in March and April to only 42 per cent in May.Â 
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While house values continue to rise in London, there has been a slowdown in the rate of growth with prices up 0.6 per cent in May, versus an average increase of 0.8 per cent over each of the last six months. 
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And in the capital, the main growth is in lower priced areas perceived as offering better value for money - prime central London prices actually rose just 0.2 per cent in May.
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Another statistic bolstering the slowdown-theory is that the average time a home is on the market between initial marketing and a vendor agreeing an offer is now 6.5 weeks, up from a recent 6.3 weeks.Â Meanwhile, the proportion of the asking price achieved is starting to plateau and is currently at an average of 96.8 per cent.Â 
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“Strong price increases, widespread talk of a possible housing bubble and recent warnings from the Bank of England on house price inflation are starting to test the resolve of buyers,â€ says Hometrack’s research director, Richard Donnell.Â 
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Peter Rollings, chief executive of London agency Marsh & Parsons, says that the writing has been on the wall for six weeks now.Â 
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“A renaissance of supply is offering buyers more choice than they’ve enjoyed in recent months and is good news for sellers searching for their onward purchase. Double-digit annual increases are not sustainable and as the market self-regulates itself, sellers and estate agents need to adjust their price expectations accordingly,â€ he says.
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Rollings, one of the capital’s most experienced agents, says the slowdown is an organic development and should not be tampered with by the government or the Bank of England. “Ramping up interest rates or making mortgages more expensive would be a gross over-reaction, which could harm the wider market outside of the capital,â€ he says.Â 
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Although many agents have reported London transactions as slowing and price rises plateauing, Rollings’ comments provoked a sharp rebuke from Ed Mead of Douglas & Gordon, who took to Twitter to ask: “Why would anyone ‘call’ the top of the market other than to get a headline? Buyers will [wrongly] assume it’s not going to fall.â€