The average UK house price rose by 2.4 per cent in January giving an annual rate rise of 16 per cent, according to Halifax, further fuelling speculation on an interest rate hike.
When compared with January 1999 figures the increase gives a projected annual house price inflation rate of 16 per cent.
The surge takes the average UK house price to £85,168.
Halifax spokesman Ian Beggs says: “The recent interest rate rises appear to have done little to slow the pace of the housing market. We think there will be an expectation of further interest rate rises.”