House prices have risen by more than 10 per cent in the last year, new figures show.

In England and Wales the average cost of a house rose by £10,000 to £121,881 over the last 12 months, an increase of 10.2 per cent.

The largest increase was seen in East Anglia, where house prices rose by a fifth. Surprisingly, Greater London was the only region not to see a double-figure increase in house prices when comparing the first quarters of this year and 2001.

The increases have been attributed to a continuing shortage of housing, despite increased demands, and low interest rates.

However, in comparing the last two consecutive quarters, the figures from the Land Registry reveal an increase of just under two per cent. In these figures, London saw the greatest rise, of 6.2 per cent, while the North saw a drop in prices of just under three per cent.

Only London, East Anglia, the South West and the South East saw increases in house prices over the last six months.