House prices in Britain climbed in February at their fastest annual rate since June 2003, a survey showed today.
Property consultant Hometrack said house prices rose 6.4 per cent this month from a year earlier, up from 6.0 per cent 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 per cent.
However, unlike the previous month when growth was concentrated in a quarter of areas, prices in February rose more evenly, with rises in 42 per cent 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.
The Bank of England raised interest rates in January to 5.25 per cent, their highest level in five-and-a-half years and the third increase since August.
Concerns over interest rates and the limited availability of houses for sale are acting as major constraints on supply and pushing up prices, the survey said.