House prices surged ahead by a huge 3.4 per cent during April, according to figures released today.

They come almost immediately after Bank of England Deputy Governor David Clementi indicated the boom would not lead to an imminent rise in interest rates.

Mr Clementi said he was not convinced a dangerous bubble in the housing market existed which would justify a rate rise.

The Nationwide Building Society said the April increase was the highest monthly rise since it started monitoring monthly figures in 1991, and was probably only matched by a few isolated months in the late Seventies and Eighties.

The jump pushed annual house price inflation up to 16.5 per cent, while the average price of a house is now £100,473.

Interest rates have been held at 4 per cent since November and the City has been forecasting a rise to rein back consumer spending and the booming house market.

Mr Clementi said while residential house-price inflation had caused some concern and could not be sustained forever at current rates, the evidence for a bubble was not conclusive.

Speaking about the latest house price figures, Alex Bannister, Nationwide's group economist, said: "This means UK house prices have risen by just over £14,000, or 16.5 per cent during the past 12 months."

He dismissed fears the market was in danger of overheating.