(1888PressRelease)
May 05, 2007 - However, regional reports show that in some areas house price growth is lower than the overall inflation in the UK economy, meaning that prices are falling in real terms.
The Land Registry's house price index (HPI) found that average property prices in the UK rose by one per cent in the last month and by 8.3 per cent from March 2006 to March 2007 - one of the highest year-on-year climbs for two years.
In comparison, house price inflation from March 2005 to March 2006 was 4.3 per cent - a full four per cent lower than this year's equivalent figure.
Growth is strongest in the south of England, with Brighton and Hove reporting an average house price rise of 14.7 per cent.
By way of contrast, Nottinghamshire's average house price increased by just 1.9 per cent in the last year - significantly lower than the current 3.1 per cent consumer price index inflation rate of the UK economy as a whole.
It is widely expected that an interest rate increase this month will act to slow house price inflation significantly.
Julian King, director of National Homebuyers - a company that guarantees to make an offer to purchase any property within days - adds: "People's confidence grows as there are continued reports of house price increases. With the introduction of Hips, the surge of properties being marketed in the summer and continued interest rate rises, homeowners will very soon realise that they are owners of a valuable asset that no-one is willing - or able - to pay the asking price.
"We should be very careful about the continued effects of house price rises. It cannot be sustained."
