House prices are continuing to rise strongly despite months of economic uncertainty, according to new figures.

The statistics from the Halifax show that over the 12 months to February, prices rose by 16.9 per cent - the highest annual rate in 12 years.

Between January and February the rise was 1.5 per cent on average, taking the cost of an average house to £101,980.

Halifax's head of group economics, Gary Styles, said the anticipated slowdown in the housing market had failed to materialise.

"Although this largely reflects a bounce back in consumer confidence from the lows of the September terrorist attacks, supply shortages in the market are also contributing to higher house prices," he said.

But he warned that the slowdown in the US and elsewhere in the global economy was still set to impact on British house buyers.

"We continue to expect slowing UK economic growth and rising unemployment will result in an easing in house price inflation over the course of 2002," he said.