Fionnuala Earley, Nationwide chief economist, on the housing market

“Prices are still rising, but the rate of growth is slowing. The effects of the interest rate rises will be to cool the market from now to the end of this year. House prices at the end of the year will be between 5 per cent and 8 per cent higher than December 2006. We expect a much slower growth rate for 2008 of below 5 per cent. The delayed impact of interest rates are catching up. Overall the UK will cool but it will take longer to happen in London.”

Howard Archer, chief economist, Global Insight

“In London there is a housing shortage and money from the City and foreign investment is not as affected by interest rates. Once they get to 6 per cent, it will be more worrying. So many are stretched to buy their houses it could take a lower interest rate rise than in the past to set off a sharp correction. I do not think there will be one – rather an extended period of house prices rising no more than earnings, or less, to see the affordability ratio correct. Even the fear of rates going to 6 per cent to 6.5 per cent would deter buyers.”

Tim Wheeler, chief executive of Brixton Estates, the industrial landlord, on the commercial market

“The secondary market for industrial [outside the South East] is overvalued. Prime property will only get better. What is driving demand for offices in London is the same as demand for sheds in Park Royal and Heathrow – we are seeing a decoupling of the economy. The South East is much stronger than the rest. But in offices London now has an overhang of excess supply for two to three years’ time. Those who say that will only affect Holborn are wrong. It will have a ripple effect. There could be a devaluation of rental prospects which is one element of capital values.”