Britain's housing boom continued unabated in the first three months of this year.

House prices in the three months to March rose at their strongest pace since January 2000, according to figures released by the Royal Institution of Chartered Surveyors.

Data shows that the number of surveyors reporting price increases has risen from 49 per cent to 57 per cent in a month.

Ian Perry, the institution's national housing spokesman, said: "The housing market is busy right across the country with no end in sight to rising prices, despite many predictions that the bubble is about to burst."

"Price rises are definitely being supported by the shortage of suitable properties for sale in all parts of the country, even though traditionally this is the busiest time of the year."

But speculation over interest rate rises helped to dampen buyer enthusiasm, particularly in southern England.

The huge rise in prices in the capital and surrounding areas has now put property beyond the reach of many first time buyers.

Concern about high levels of debt being taken on and rises in stamp duty were also a factor in slowing the market.

Prices in the North of England rose at their fastest level for eight years in March.

Tyneside and Cumbria recorded the largest price rises since the survey began.

It concluded that prices will continue to rise, despite weak numbers of new instructions, because of the shortage of housing.

The House Builders Federation told the Commons transport, local government and the regions select committee that planning laws need to be reformed because the gap between the supply and demand of property is growing each year.