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Howard Archer, chief UK economist at IHS Global Insight, said: "The strong monthly rises reported by the Nationwide and the Land Registry will maintain concern that a new housing bubble could really develop in 2014, especially as the strength in house prices is spreading.
However, he added: "The strength of house prices is not yet a serious problem outside of the capital, and housing market activity is still not unduly strong compared to long-term norms, so in these respects it is premature to talk of a general housing market bubble".
While the strength of house price rises in London is becoming an increasing concern and pushing up the overall national increase in house prices, we are currently a long way off from an overall housing market bubble emerging.
Howard Archer, chief UK economist at IHS Global Insight, said: "While the strength of house price rises in London is becoming an increasing concern and pushing up the overall national increase in house prices, the ONS data support the view that we are currently a long way off from an overall housing market bubble emerging.
He added that the strength of house prices is not yet a major concern outside of London.
The strength in house sales means "solid spending for the next few months as people furnish their homes," he said.
On today's figures, Howard Archer, chief European and UK economist for IHS Economics and Country Risk said: While the strength of house prices is not yet a serious concern outside of London, it is something that needs to be closely monitored given that a number of recent data and surveys have indicated that the strength in house prices is becoming more widespread.
Howard Archer, economist at IHS Global Insight commented: "This does little to ease concern over the strength of house prices in the capital where talk of a bubble is already fully justified".
That's an alarming sign, says Observer economics editor Heather Stewart: This was the important, headline-grabbing decision, prompted by concerns about the recent strength of house prices, which Carney last week described as, "taking our foot off the accelerator"; yet apparently it was initiated not by the committee with the job of seeing off the next bubble – but in a quiet chat with Osborne.
Pockets of strength included housing, with an index of housing stocks up 0.8 percent, following Wednesday's gains on better-than-expected housing-market data.
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