Despite a subdued June which saw prices decline by 0.4% it did little to slow down the annual growth rate of the market.

Figures from the Halifax House Price Index showed that in the 12 months to July prices rocketed by 10.2%, raising questions over the stability of the market.

Stephen Smith, director, mortgage club and housing at Legal & General, said: “Whilst price rises may excite some homeowners, we need to see the pace ease off to ensure a sustainable and healthy recovery.

“The challenge for the government is to ensure that any action taken to cool down the market in London does not kill off the recovery in other regions.”

In quarter two this year Halifax data revealed the annualised rate of house price growth in London was 15.9%, a small reduction on the 17% year-on-year growth in Q1.