Speaking to an audience at the Financial Services Expo in London, Silvestrin said more people were in work than previously anticipated.

He said this would cause house prices to rise further, even as other drivers of the market slow down.

“The biggest upside risk is definitely what’s happening in the labour market,” he said.

“The labour market has constantly come in stronger than expected and if it continues to do so there is a good chance it will provide more of a boost to the housing market prices than currently expected.”

He said uncertainty about interest rates would continue to act as a drag on the market, as would the greater affordability checks introduced under the Mortgage Market Review.

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“If you look at the downside risks, the first one that comes to mind is interest rates,” he added. “On top of that we know regulators have introduced the Mortgage Market Review focusing on affordability.”