House prices in Britain will continue to rise but the rate of increase will slow over the next two years, the governor of the Bank of England said.

Sir Edward George said the current rate of increase was unsustainable but there was no immediate prospect of a crash.

He said: "My view is that we will see house price increases continue for a while yet but we will see that rate of increase moderate to zero maybe in some parts of the country over the next couple of years."