Bank of England governor Mervyn King has sparked renewed debate over the possibility of a housing market downturn, warning that prices are unsustainable and interest rates may rise again in the coming months. Commenting that prices are "well above what most people would regard as sustainable in the longer term," King told a CBI dinner in Glasgow that "anyone entering or moving within the housing market should consider carefully the possible future paths of both house prices and interest rates." King's warning follows the release of RICS latest housing market survey, which shows the biggest decline in the number of people looking to buy a new home since April 2003. It also indicates the first slowdown in the pace of growth in six months. But the housing market "remained robust" according to the report, as "tight market conditions continue to put upward pressure on prices." For full report see http://www.rics.org/downloads/market_survey/housing_market_surveymay04.pdf