New Government figures will clarify house values

The increase was higher than that in the UK as a whole, according the UK government's new House Price Index.

The survey - which hopes to give a clearer picture of the housing market - revealed that home-buyers in Wales were paying an average of �103,669 for their properties.

That was still cheaper than in England, but more expensive than Scotland and Northern Ireland.

But one independent expert has said that prices in Wales have now begun to level off.

The data for the new government index is collated by the Office of the Deputy Prime Minister.

AVERAGE HOUSE PRICES England: 166,669 UK: 156,273 Wales: 103,669 Northern Ireland: 100,246 Scotland: 93,778 Source: Office of the Deputy Prime Minister

It said the move to produce the figures on a monthly basis followed calls from the Bank of England and the Treasury for an official monthly house price index to help their forecasting.

While other market surveys are based on prices agreed when mortgages are advanced, the government's version covers actual prices when the transactions are completed.

But limitations in the data on which it is based means it will only monitor about a quarter of the UK's mortgage-funded deals each month - and will not include properties bought for cash.

In Wales, independent property expert Martyn Russell said he hoped that this new index would become the definitive guide.

He added that he was not surprised at the inflation rate in Wales.

"It (price inflation) starts in London, comes down the M4, reaches Wales, goes to west Wales, bounces off the sea and comes back. We are playing catch-up with London," Mr Russell said.

"In Wales, prices are now starting to stabilise. We are seeing estate agents' boards up for longer.

"Cardiff has a micro economy, and Cardiff Bay is the one area I'd be concerned about because there are so many new properties there. But, good traditional areas will remain good traditional areas."