House prices fall £3,500 for every mile when leaving London towards Manchester, explained estate agent Henry Pryor.

He said there was no real national picture for house prices, but a series of local markets, as he looked at asking prices with Bloomberg economics editor Linda Yueh on BBC Radio Four's Today programme.

The Bank of England said new mortgage applications fell in June to their lowest point for more than a year.

It followed an IMF recent report on the UK economy suggesting prices were 30% overvalued, but it added Britain was short of houses and that might keep prices high.

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