Although the growth in property values is expected to slow, the rise could still be well over the level of inflation, according to the National Association of Estate Agents.

After years of unprecedented growth in the price of property in the South West, it is predicted house prices in the region will continue to rise by about 5% next year.

Last year the average price of a property in the area rose from about �150,000 to �175,000.

Many workers in Cornwall, where the average wage is �18,000, have been squeezed out of the property market by soaring house prices.

And in the South Hams area of Devon - where the average price of a home is �178,000 - 11% of properties are second homes, one of the highest proportions in the UK.