A BOLTON-based property expert has attacked scaremongers who claim the housing market is on the brink of collapse.

Andrew Thompson, a senior partner for Miller Metcalfe, on Bradshawgate, has comforted homeowners by saying there will not be a repeat of the bust which affected many families in the early 1990s.

This is despite some people, including Bolton Euro-MP Chris Davies, claiming the current rise in prices is unsustainable and there could be another collapse.

Mr Davies said: "The collapse of the house price boom risks leaving thousands of new buyers with negative equity and huge debts. We seem intent on repeating the mistakes of the past."

But Mr Thompson, who has been qualified for 31 years and has worked in the town for 22 years, sees things differently.

He said: "The 1992 collapse was artificial and manufactured by a Government who put interest rates up to the highest levels in Europe.

"Now the rates aren't controlled by Government and there is much greater stability in the market. Why would the Bank of England put up interest rates when they are directly linked to the stock market?" Mr Thompson also said there is no sign of the market slowing down in the town.

He added: "If there is any slow down it will be a gentle bump rather than a crash, but Bolton is something of a jewel in the crown. The market here is much stronger than Bury or Burnley, for example."

MEP Mr Davies said a 10 year study by the Halifax claims that the north-south divide is widening and that the property market highlights this.

In Bolton, the average house now costs £80,512, an increase of £5,144 on last year. But in London, house prices have risen by £36,950 to an average of £206,425.

He said: "Property owners in Bolton are finding it impossible to move south for employment reasons, while even those in rented accommodation face permanent disadvantage through no fault of their own. The opportunities open to them are being severely limited."

Mr Thompson agrees that there is a north-south divide, but he is confident that the problems associated with this lie firmly at the capital's door.

"The danger is to London where there are booms and busts all the time. Just look at disposable income and you see that people do not have any money to spend. By the time people have paid for their accommodation and travel expenses they have nothing left."