Nationwide, which produces one of the country's leading house price indices, said the average house price rose by 1.7% in December to �117,206.

The company is now expecting a 10% jump in overall house prices in 2003, but warned that some areas, particularly London, would see falls.

"Certain hotspots may see things cool down considerably," said Nationwide's chief economist, Alex Bannister.

Slowing boom

The building society's survey suggested average house prices grew by �23,662 or �65 per day in 2002, during a boom year for the housing market.

(A crash) is possible but pretty unlikely Alex Bannister, Nationwide

However, growth rates showed some signs of slowing. December's 1.7% rise came on the back of a 2% increase in November.

And in the three months to December, prices grew by 6.7% on the previous quarter, down from growth of 7% and 7.5% in the two previous three month periods.

Various surveys have predicted that prices will continue to weaken in 2003, with a survey of experts predicting last month that increases would slow to between 5% and 10%.

More confidence ahead?

The Nationwide is more confident, suggesting that some areas would continue to see growth as high as 15%.

A regional growth pattern has developed since 1997, with prices originally rising fastest in the South East before the hotspots move Nationwide

The building society also contradicted suggestions that a housing market would crash like in did in the early 1990s.

"(A crash) is possible but pretty unlikely," said Mr Bannister.

"We have pretty good economic conditions, we have low interest rates and there is no reason why we should see anything like a repeat of the early 1990s."

Yorkshire strength

Regional house prices will vary considerably, however, with Nationwide predicting a sharp reversal of the leaps seen previously in London and the south east.

Its figures suggest London is now showing weaker growth than all but two other regions, Scotland and Northern Ireland, as job cuts in the financial world hit house prices at the higher end of the market.

London house prices grew 21% in 2002, compared with 35% growth in Yorkshire and Humberside and 16% in Scotland and Ireland.

"A regional growth pattern has developed since 1997, with prices originally rising fastest in the South East before the hotspots move to regions such as the Midlands and East Anglia and finally on to Wales and the North," said Nationwide.