Despite signs that the market is beginning to slow down, the current pace of house price inflation is so great that the average price of a home will exceed £460,000 by 2025, new research shows.

The figure comes from the Centre for Economic and Business Research, and, despite being 2.4 times higher than the current average, is based on predictions that annual house price inflation will be below five per cent from 2016 to 2026.

By comparison, even the current slowdown now being widely reported by most media outlets sees house price inflation still standing at 9.1 per cent annually, according to figures published by the Land Registry this week.

The extent to which the country has become overly concerned with lower price growth seems evident from the latest research, with sustained price drops still very much off the agenda – in part because of the continued lack of supply.

"Meeting its targets for house building will be crucial if the government is to help alleviate the current supply shortage in the housing market," commented CEBR's John Ward.

But the CEBR has admitted that even successful government plans will only serve to cap prices at the above-mentioned £460,000 figure.