The Bank explains: One possibility is that the housing market could be in for a soft landing, with house price growth slowing as affordability constraints bite.
Small, relatively inexpensive flats now dominate the market there, it said, as affordability constraints and double stamp duty rates on larger properties have altered demand.
"It's not clear yet whether buyers are suffering from affordability constraints after a period of strong price rises, hitting tougher lending rules or just looking around and seeing less property available and delaying their buying decisions".
Estate agents have been reporting that the London market is coming off the boil, as fears over interest rate rises, affordability constraints and an increased reluctance by buyers to pay high prices take hold.
In this regard, the reforms following the FSA's Mortgage Market Review, which came into force last week, should help to ensure that affordability constraints do act against pressures on house prices.
He added: "A subsequent uptick in [mortgage] approvals is anticipated, albeit still at levels lower than earlier this year as affordability constraints and lack of properties on the market for sale continue to bear down on borrowers.
It is possible that affordability constraints, reinforced by lenders' underwriting standards, will increasingly act as a brake on the speed at which house prices are growing and as a brake on mortgage debt.
Lucian Cook, head of UK residential research at Savills, said London prices were at an all-time high compared with the rest of the UK, but predicted they would grow more slowly after 2015 as "affordability constraints" in the capital begin to bite.
One of the specific features Nokia has developed with "network and affordability constraints" in mind is its cloud-based Xpress browser which compresses web pages before delivering them to help reduce data consumption.
