BOOMING house prices will only be controlled by putting up interest rates to more than 8%, a top economist warned today.

Martin Weale said he believes the property market is a "bubble" which is turning into an economic "disaster".

The director of the National Institute of Economic and Social Research, said a "quarter-point here or there" is not enough to control the boom.

He explained: "The UK property market, in terms of its implications for the economy as a whole, is something of a disaster.

"It would be nice if the Government thought about this, instead of regarding it as an issue to be left to the Bank of England.

"Ten per cent might bring the boom under control, or possibly eight per cent would be enough to do it." The Bank of England base rate is currently 5.25%.

The claim came despite signs that house price inflation is cooling down. The Royal Institution of Chartered Surveyors revealed 24% of its members reported a rise in prices than a fall during the month, down from 28% in January.

Figures show house price growth has now slackened to its slowest pace since May last year, with the pace of increase only just above the long run average of 21.6%.

Supply conditions and a strong economy continue to support underlying house values, but interest rate hikes have begun to weigh heavily on buyer affordability, the RICS added.

Almost 20% more chartered surveyors reported a fall over a rise in new buyer inquiries during February.

Experts believe demand is set to weaken further in the coming months as January's base rate hike begins to take effect on the market.

A shortage of available housing has helped price growth in London and the South of England remain strong, but there are signs of a slowdown elsewhere, RICS said.

The market in Scotland and Northern Ireland remains robust, but parts of England recorded weaker price growth, with small falls seen in the East Midlands."

Ian Perry, spokesman for the RICS, said: "The interest rate rises have started to worry would-be buyers with many concerned that they will be unable to meet mortgage repayments.

"Affordability for many will continue to decrease in the coming months as the January rise, and further rises take effect."