Bank of England governor Mark Carney is considering further steps to prevent the housing market from overheating.
He said recent measures to prevent a bubble "may not be enough", and more action will follow.
But he offered reassurances that the quickening recovery won't trigger an imminent rise in interest rates.
Mr Carney defended his policy forward guidance while speaking at the House of Lords economic affairs committee yesterday.
He said the promise not to consider a hike in the base rate until unemployment falls below 7% had helped to reduce market volatility.
But he added that recent action, such as scrapping the Funding for Lending Scheme for residential mortgages, may not be enough to slow recent dramatic house price rises.
The Bank would work with the Financial Conduct Authority to create additional tools to address potential problems, Mr Carney said.
Latest official figures showed prices rising 5.5% across the UK, and 12% in London.
Andy Knee, chief executive of LMS, was concerned that the "steadfast" climb in property values might force the Bank will be forced to take early action to prevent growth turning into a bubble.
"There is a risk that the Bank of England will be forced to apply the brakes sooner than most commentators expect."
Knee also said that the introduction of new regulations in April will act as a speed bump to the accelerating market.
Alexander Gosling, director of the online estate agents Housesimple, warned that many buyers who overstretch themselves today could come unstuck if the Bank puts the brakes on the market.
"London remains at risk of overheating and buyers there should beware letting their confidence run away with them.
"Interest rates will rise and those buying in haste and beyond their means now may repent at leisure later."
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