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Wake up call: Bank of England to address rising house prices

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As house prices look set to continue rising during 2013, U.K. policymakers plan to address concerns of a housing bubble on Wednesday. But not everyone is happy about potential attempts to "dampen" a nascent housing recovery.

The Bank of England (BoE)'s Financial Policy Committee will discuss whether the combination of government schemes such as "Help to Buy" and the lack of housing supply are causing a new property bubble to form, and if and when the Bank should intervene.

What is in no doubt is that house prices are increasing, however.

On Monday, online real estate portal Rightmove said it expected national house prices to rise by 6 percent in 2013, up from a previous forecast of 4 percent. It said the increase was due to the decline in new homes coming onto the market, with the number of new sellers dropping 9 percent in September from the previous month.

(Read more: UK recovery goes from strength to strength)

The data came after Business Secretary Vince Cable warned of "serious housing inflationary pressures" in parts of the U.K., due to the government's mortgage lending scheme for first-time homebuyers. Members of the Royal Institute of Chartered Surveyors, an influential U.K. lobby group of surveyors and estate agents, have asked the BoE to take action to cap house price rises at 5 percent.

(Read more: House prices: The real sign a bubble is approaching)

However, some real estate market analysts were unsure the government should step in just yet to try to tame house price growth, particularly as the housing industry is viewed as an important part of the U.K. economy's return to prosperity.

Residential funds and asset management firm London Central Portfolio said that fears of a house price bubble were "premature" and that "knee-jerk reactions to short-term movements" were unhelpful.

"In a fragile economic recovery, it would seem ill-judged to dampen the small sparks of hope for many U.K. home owners," the firm said in a note on Monday. "Current price growth is vastly under long-term average…A significant uplift in prices can now be expected as the economy improves. This will be a market correction, not atypical inflation."

(Read more: Booming Britain? Not so fast, says Kingfisher CEO)

Rightmove's director and housing market analyst said the supply of new housing and consumer confidence were at the root of the problem, rather than house prices in themselves.

"Sellers have yet to respond en masse to increased buyer demand…It shows that potential sellers are still cautious, and a return to a volume market remains elusive," Miles Shipside said.

"Those that think the housing market is nearly back on its feet are missing the fact that the confidence and ability to take on extra debt have a considerable time-lag, and many potential sellers require green stalks of recovery rather than just green shoots."

- By CNBC's Holly Ellyatt, follow her on Twitter @HollyEllyatt