AS Britain basked in unusually hot weather over the summer, the temperature also turned up in the housing market.

Strong growth in demand from would-be buyers has prompted a sharp rise in house prices in some regions, leading some experts to fear that the market is in danger of overheating, and that the country is heading for another bout of boom and bust.

The Royal Institution of Chartered Surveyors recently called for a cap on annual house price growth, suggesting the Bank of England should intervene if they rose by more than five per cent.

So why are these concerns being raised now? Much of the recent rise in demand has been put down to a significant increase in mortgage availability over the past year, thanks in large to a string of Government schemes to kickstart the market, such as Help to Buy and Funding for Lending.

Some people who may have struggled to get a mortgage previously have suddenly found that lenders have turned the taps back on again.

The typical interest rate on new mortgages has fallen to a record low of 3.47 per cent, according to recent figures from financial regulators, while lenders have reported seeing first-time buyer numbers reach their highest levels in more than five years.

The greater demand has combined with a shortage of properties for sale to push up prices.

Meanwhile, the Government is preparing to inject further activity into the market with the launch of a second, more controversial, phase of Help to Buy at the start of next year.

The first stage, which began in April, offers loans so people can buy new-build homes with a deposit of only five per cent.

The second stage, due to come into force in January, extends the support to buyers with small deposits to any property costing up to £600,000, with the state effectively taking on the risk of a borrower defaulting.

Several commentators have urged the Government to consider ditching this phase, including financial expert Ros Altmann, who says the scheme should be focused on building new homes, not increasing demand for existing properties.

However, lenders and Ministers have dismissed concerns that the country is heading for an over-inflated housing market, puffed up by the Government promoting borrowing that would otherwise be unaffordable.

The Council of Mortgage Lenders described talk of a bubble as premature, and said: “We are a long way from such conditions and we do not imagine that Bank of England officials are losing sleep about current developments.”