Expectations for rising house prices have soared to a fresh 15-year high amid concerns the Federal Government’s expanded first-homebuyer scheme will light a fire under property values.

A new Westpac-Melbourne Institute survey on Tuesday said the bullish consensus on house prices continued to strengthen. Its index of house price expectations rose another 2.1 per cent in October, hitting a fresh 15-year high of 171.9 points.

A score above 100 signals the proportion of consumers expecting price increases outweighs those expecting prices to stay the same or fall.

Westpac head of Australian macro-forecasting Matthew Hassan said just over three-quarters of consumers expected prices to rise over the next 12 months.

Expectations are still stronger in Queensland (184) but lagging a touch in Vic

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