Jeremy Newsum, chief executive of Grosvenor Group, one of the largest landlords in Britain and an active investor overseas, has warned that the property market could be riding for a fall.

In Grosvenor's 2006 annual report he said: "It has become too easy to make high 'double digit' returns from investing in property and for many new investors attracted to the sector the results are self-fulfilling. There is a real danger of delusion as this additional capital chases a total stock of investments which can only grow very slowly."