House prices are still booming

THE average cost of a house is now £163,584, new figures show. The price went up 12.6% in England and Wales between the final quarter of 2002 and the same period of 2003, according to the Land Registry.

Greater London remains the most expensive area, with a £260,659 average. During the final three months of 2003, some 760 properties - about eight a day - were sold in the capital for more than £1m.

The cheapest properties are in the North, at an average £102,074. But northern regions and Wales still had a good 2003, with prices soaring by more than 20%.

Wales led the way with a 24.6% increase. Yorkshire and Humberside and the North showed growth of 23.1%, while the North West recorded a 20.4% rise.

But while other regions managed strong double-digit growth, the cost of a home rose by just 7.8% in Greater London and 9.2% in the South East.

Martin Ellis, Halifax chief economist, said: '2003 was the year of the North and we expect the same thing to happen during 2004. The North always plays catch-up with the South, with increases in London rippling out. Houses from the Midlands upwards have also been more affordable.'

The North West is the second cheapest area, at an average £110,136. This is followed by Wales at £111,272 and Yorkshire and Humberside at £112,351.

Prices in the East Midlands went up 19.9% in 2003, to £132,893. In the West Midlands they rose 17.5% to £139,227.

The most expensive areas, after Greater London, are the South East at £205,109 and the South West at £176,093.

All regions reported price rises in the final quarter of 2003 compared with the previous quarter. Wales again led the way with a 4.5% increase on the three months to the end of September. Yorkshire and Humberside came next, at 3.2%.

But South East prices rose just 0.3% on the previous quarter. And London did not fare much better, managing a rise of only 0.6%.

The cheapest area is still Blaenau Gwent in South Wales, where the average cost of a home is £50,585. However, this is well up on the £41,529 at the end of 2002.

Property is most expensive in Kensington and Chelsea, in West London, at an average £689,917.

The Land Registry also said that sales were up 2% during the final three months of the year compared with the same period of 2002.

Some 301,405 properties changed hands in England and Wales. But sales fell in London, by 1.73% to 36,185.