Official - house prices up 10%

BRITAIN'S property boom continues to race head with price rises in Scotland and the north of England leading the way, according to official figures.

The Office of the Deputy Prime Minister said annual UK house price inflation edged higher, from 9.7% in January to 9.8% in February. But the increase masked the ongoing picture of a boom in the north and a cooling market in the south.

Annual price rises in Scotland were 26.2%, a steep increase on 23.3% a month before. Meanwhile, prices rose 26.8% in the North-East, 19.6% in the North-West and 18.7% in Yorkshire and Humberside.

The South-West, a region which ranked among the hottest property markets in 2001 and 2002, saw the most dramatic slowdown with price rises easing from 7.9% to 4.4% - the same rate as the South-East.

In London, where the property market began cooling two years ago, price rises increased from 5% to 5.7%.

The bad news continued for first time buyers. The average price for novice buyers was 12% higher than a year before at £125,322.

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Soothsayer predicts house price crash
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The ODPM house price survey was launched in September in response to criticism that a raft of house price data – produced by publicity-hungry lenders, surveyors and agents - might be distorting the decisions of buyers and sellers. The Treasury and the Bank of England backed calls for a definitive index.

Critics say it works on data that is already two months old and only includes information on properties bought with a mortgage.