The partner of Hertfordshire-based Highclere Financial Services said: “We have an artificial base rate which, together with the government incentive schemes, is pushing prices up.”
He said the act of gazumping – a disallowed practice popular in the 1980s where buyers could find their offer rejected at a late stage after a new, higher one was accepted – was happening in a new form.
Mr Lakey added: “A form of gazumping has returned. We also have the very real expectation that rate rises will be applied in 2015/2016. If this does happen then we may see a reoccurrence of the 1991 situation where rate rises halted demand and made it impossible for many borrowers to pay their mortgages.”