House prices rose another 1.6 per cent in February after two recent interest rate rises failed to take the heat out of the market.

Halifax, Britain's biggest mortgage lender, said the year-on-year increase now stood at 17.8 per cent, up from 16 per cent in January and 15.4 per cent in December.

The average price of a home being sold is currently at £148,089.

The latest surge in prices came despite action from the Bank of England to raise the cost of borrowing in November and February, lifting mortgage payments as a percentage of earnings from 13.9 per cent to 15.5 per cent.

Thursday March 04, 2004