Bank chief issues new slump warning

The Bank of England today issued a fresh warning that the housing market was vulnerable to a crash.

It said that while the long-running property boom looked to be coming off the boil, there was still a risk that prices could fall sharply.

Bank governor Mervyn King said: "Measures of

in the housing market indicate that house price inflation may now be beginning to ease."

Property website Hometrack yesterday also reported that house prices were falling as higher interest rates