Persistent shortage of houses pushed property prices drastically up in the UK, particularly in London and the south east, for a third consecutive month in May.

The "Help to Buy" scheme that helps people buy their first home could be rolled back to addresses overheating housing market, Deputy Prime Minister Nick Clegg has indicated.

Mr. Clegg said that the government could pare back the mortgage help scheme in case the Bank of England (BoE) determines that the country's housing market is overheating.

Bank of England (BoE) Governor Mark Carney on Wednesday said that the British economy was returning towards "normal" but declared that the central bank had no plans to hike interest rates in the near future.

Many analysts are of the view that BoE should increase interest rates to tackle soaring property prices.

Housing crisis in London is growing deeper for middle-class people as demand for affordable houses is outshining supply, pushing prices up.

Pocket Living Limited, which uses interest-free funds from the city for constructing homes and selling them for nearly 20 per cent below market rates, said that the people who are neither rich nor poor are suffering the worst brunt of the housing crisis.

The Royal Institution of Chartered Surveyors (RICS) has cautioned that Britain's housing crisis is getting worse as lack of supply continues to restrict the market.

The number of homes available for purchase in the market has been declining for the last four month. It is the first time that supply of residential property has declined for four months in a row since 2000.

Concerned over soaring house prices across the UK, the Organisation for Economic Co-operation & Development (OECD) has urged the government to scale back its controversial "Help to Buy" scheme that allows people to buy a property with just a 5 per cent deposit.