A property financier believes the Reserve Bank is unlikely to place further restriction on home loans, with the economy verging on deflation.

The latest QV figures show a sharp rise in property values.

The Reserve Bank has already warned it has other measures in its tool box such as putting limits on the loan to income ratio to cool down the housing market.

But director of NZ Mortgages & Securities James Kellow feels that's unlikely.

"I think inflation is not a worry anymore for the Reserve Bank, and that should allow them to free up on lending restrictions."