House price boom 'hasn't peaked'

THE run away housing boom shows no signs of slowing down, a leading home loans expert said. Prices had not peaked and would continue to be buoyant, predicted Michael Coogan, director-general of the Council of Mortgage Lenders.

He added: 'The mortgage approval numbers we have highlighted over the last two or three months are going to show several more months of high activity.

'If you look at all the signs, confidence in terms of activity and wanting to be in the market, I can't say we have reached a plateau and started to slow down.'

However, Coogan said he believed the market would return to more sustainable levels since high prices meant fewer new buyers could afford properties.

Prices soared by 20% last year, but some lenders and property market analysts have warned that the bubble is about to burst.