House values in Wales are falling behind in UK terms

The average cost of a home is 76% of the UK average compared to 86% a decade ago, according to Halifax, the UK's biggest mortgage lender.

Figures in May released by the Land Registry showed the average house price in Wales went up nearly 24% to �90,585 at the beginning of 2003.

The Halifax results put the rise in prices during last year at 29.6% - with the average house cost in the UK at �129,443.

They suggest Wales' housing market has lost out as property prices soar in the north of England, continuing to narrow the gap with the more expensive south east of England.

Housing market

While the price of the average house in London in the second quarter of 2003 was only 11.5% higher than at the same point last year, a region covering Northumbria, Cumbria, Tyne and Wear, County Durham and Cleveland saw growth of 36.4%.

Scotland has also fallen behind the rest of the country with average prices now only 60% of the national average compared to 92% ten years ago.

Halifax's chief economist, Martin Ellis, said: "Continuing housing market buoyancy in the north over the second half of the year combined with a pause for breath in the south should close the gap further.

"Property prices in the south will, however, remain significantly higher than those in the north."