The Government's "unwise" Help to Buy scheme has been criticised amid the Bank of England governor's warnings of a property "boom".
Sam Bowman, research director of the Adam Smith Institute, said: "Mark Carney's comments on house prices are timely and accurate: the house price boom in London, the south-east and the East Midlands is fundamentally down to a lack of housing."
He added that the "supply-side crisis" meant it was up to the Government - not the Bank - to bring prices under control, and called for a rolling back of the green belt to create space for one million homes.
Mr Bowman said that while Help to Buy was "probably too small to make a substantial difference to house prices" it was "inflating demand without increasing supply".
More top news
A jury has failed to reach a verdict in Emile Cilliers' trial on charges of attempting to murder his wife by tampering with her parachute.
Prince Harry and Meghan Markle are rumoured to be heading for engagement. Is the institution on the cusp of change? ITV Tonight reports...
Average earnings by 2021 also look set to be nearly £1,400 lower than forecast in March 2016, the Institute for Fiscal Studies has warned.