For the first time in its history, the Council of Mortgage Lenders has urged the Bank of England to put up interest rates by the end of the summer.

The CML's Michael Coogan said higher rates were needed to ensure a "soft landing" for the housing market.

His comments suggest that even mortgage lenders view recent house price rises as unsustainable, says the FT.

"A quarter point rise would have quite a striking effect," said Coogan.

His comments came as figures showed that gross mortgage lending hit record levels for the third month in a row - rising by 19 per cent to £19.5 billion in May.