British house prices rose 0.9% in February, property website Hometrack said today.
This was the fastest rise since October 2002 and followed a 0.3% rise in January. Hometrack said the jump in prices was a result of buyer interest outstripping supply. The average house price stood at £148,500 sterling last month.
'The housing market continues to strengthen. The green shoots that began to appear in January look set to blossom this spring,' Hometrack said.
House prices are closely watched economic indicator in Britain where two-thirds of families own their homes. The Bank of England has long warned that house prices are rising at an unsustainable rate. It raised interest rates last month for the second time since November, partly to cool the property boom.
Policymakers at the central bank are worried that the longer the boom continues, the greater the risk of a crash that could hit consumer spending and the whole economy.
