Analyst, Rob Thomas of UK Housing Economics, claims that house prices are set to rise on average by 10%, or £17,000, in the next two years.

With more people employed then ever before and due to the fact that population is outstripping the supply of new properties, Mr Thomas believes that todays average home price of £168,000 will increase by £6,000 or 4% this year. That is likely to be followed by a 6%, or £11,000 rise in 2006.

Mr Thomas said: "Previous housing crashes were triggered by higher interest rates and recession. Today, neither rates nor unemployment are about to soar. That means incomes arent about to collapse."

"Without any of the triggers for a crash, it seems bizarre for people to talk about prices plunging," he added.