HOUSE prices in six regions of England are now more than 20 per cent higher than they were a year ago, according to the latest national survey.

The Midlands is among the three regions showing the lowest percentage gains, with a 15.74 per cent increase over 12 months, up by 2.21 per cent in the past month.

The survey by TEAM, the country's largest network of independent estate agents, shows that in some areas, prices have increased at an even faster rate in the month - more than 4 per cent - equivalent to nearly 50 per cent a year.

Across the country, the average price of a home was £144,323 in mid-June, £21,815 ahead of June last year, while the average house in the Midlands was £123,399.

The survey is based on 15,232 homes listed as "under offer" by agents in 16 regions of England and Wales.

For the past two months, the national monthly increase has been running at more than 3 per cent, equivalent to 36 per cent a year if it continues at this level.

Dorset and West Hants is now showing the highest annual increase, a shade under 25 per cent, followed by Devon, North London and Herts, Anglia and East Yorkshire. But the sharpest increases in the past month were in South Hants, Cornwall, Somerset & Avon and South Wales.

"The south coast, in particular, continues to be overheated," said TEAM's national chairman Philip Muzzlewhite.

"Prices there are going up too far, too fast and this is unsustainable.

"Until now, I have felt there was a very good chance that house prices would level out, but if the pendulum keeps swinging in this direction it will inevitably swing back and we will see a drop."

Jim Atkins, former president of the National Association of Estate Agents, said demand for property and willingness to pay the prices continued unabated.