Property prices rose 12.86% between the summer of 2000 and the summer of 2001, according to the most comprehensive survey of house prices in England and Wales.

The average property cost �123,856 during the July-September quarter of 2001, compared with �109,745 during the same period last year, the Land Registry's data on actual home sales revealed.

Prices accelerated during the third quarter of 2001 compared with the second quarter when property prices rose 10.8%, the Land Registry said.

The Land Registry data confirms what UK mortgage lenders were saying during summer.

All economic regions in England and Wales showed an increase in average prices.

Property prices peaked?

At the time, the estate agents said the property price rises were unsustainable.

Indeed, house prices fell by a slight 0.5% in October, according to the latest figures from the Nationwide.

Economists have long been predicting that the world economic slowdown and the aftermath of the 11 September terrorist attacks would eventually filter through into the UK's burgeoning housing market.

The latest mortgage lender data indicates that these predictions are beginning to take hold.

But Nationwide still expects house prices to rise next year, albeit at a more sustainable rate.

More sales

The boom in property prices during summer was aided by interest rate cuts that made mortgages cheaper.

Consequently, more than 300,000 properties were sold during July, August and September this year, compared with less than 240,000 properties during the same period last year, the Land Registry said.

Old beats new

In a twist that may be a typically British phenomenon, the Land Registry survey has revealed that older properties were more popular than new ones.

That was true for both detached and semi-detached houses, as well as for flats and maisonettes, though not for terraced houses.

The only type of property that saw a fall between the July-September quarters of 2000 and 2001 was new flats and maisonettes.

During the summer of 2000, the average price of a new flat or maisonette was �163,900. A year later, the price had fallen to �161,167.

The average price of an old flat or maisonette rose 15.48% during the same period, the sharpest average rise seen for any type of property.

The average price of new terraced properties rose 24.45%, the second largest rise, while old terraced properties saw a 13.01% rise.