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The word of caution follows the publication last week of a leading economic think tank report suggesting house prices will rise from a national average of £222,000 this year to £267,000 in 2018.

The independent Centre for Economics and Business Research (CEBR) also predicts house prices will pass their pre-recession peak as early as next year, basing its predictions on underlying medium term economic trends such as gradual wage and population increases.

Brian Holt’s Kenilworth manager, Julie Philpot, explained: “The figures seem quite dramatic, but they are based on very sober macro-economic data by a highly respected institution.

“Having said that what we need to take into account is that if demand continues to outstrip supply, for example in areas of high employment or where there is little or no new build then this may well be likely.

“But if new building were to gather pace, if mortgage rates went up or if building was allowed on green belt land, for example, then supply would get closer to demand and price rises would be tempered.

“There are clear signs though of a general upward trend. The Nationwide, for example, is reporting that prices in March 2013 were 0.8 per cent higher than a year earlier. And with lenders offering fixed rates of below two per cent, now is looking a good time to buy.

“The CEBR report adds crucial long term reassurance to prospective house buyers and has been made without reference to the additional boost expected from the Help to Buy initiatives announced in last month’s budget.

“But it remains to be seen whether the increase will be as great in this areas as predicted.”