House prices rose by 0.7 per cent during April as demand for new homes continued to outstrip supply.

Property website Hometrack said the increase, which follows gains of 0.7 per cent and 0.9 per cent in the previous two months, pushed the average price of a property in England and Wales above the £150,000 mark for the first time - to £150,800.

The group said it expected further strong rises as the number of people looking for a new home continued to outstrip the number of properties for sale.

It has predicted that prices in England and Wales, which have increased by 2.6 per cent since the beginning of the year, will rise by eight per cent during 2004.

Price rises were seen in all regions during the month, with Cumbria leading the way with a 1.7 per cent gain, followed by Mid Wales and Norfolk, both at 1.1 per cent.

The East Riding of Yorkshire saw the lowest increase of 0.3 per cent, while the average price of a home rose by 0.4 per cent in the West Midlands, Oxfordshire, Derbyshire and Buckinghamshire.

During April the number of sales agreed rose by seven per cent, building on March's increase of ten per cent.

Sellers are now getting an average of 96.4 per cent of their asking price - up from a low of 94.2 per cent in June last year - and the highest level since November 2002.

Homes are taking an average of 4.2 weeks and 10.2 viewings to sell.

John Wriglesworth, Hometrack's housing economist, said: "House prices continue to rise strongly with no signs of a slowdown. Demand continues to outpace supply and sellers are getting ever closer to their asking price."

Tuesday May 04, 2004