Record rise in house prices

According to the latest report from property consultant, Hometrack, house prices climbed in February at their fastest annual rate since June 2003, with robust growth in London and the southeast overshadowing weaker increases elsewhere.

House prices rose 6.4% this month from a year earlier, up from 6.0% in January. Price growth was once again concentrated in London and the southeast, with property prices in areas such as the Midlands and Wales edging up by just 0.1%. However, unlike the previous month when growth was concentrated in a quarter of areas, prices in February rose more evenly, with rises in 42% of the nation.

"Despite the January rate rise, it seems that a lack of supply is continuing to support higher prices, primarily in London and the southeast," said Richard Donnell, Hometrack's Director of Research.