The hometrack national February survey of the housing market reveals widespread house price rises for the month, averaging 1.4% - not far short of the 1.7& average rises reported yesterday for the London market.

This sharp increase follows relatively moderate rises over the previous four months: January 0.1%; December 0.1%; November -0.1%, October 0.2%. The upturn in house prices accompanies a strong uplift in the number of buyers entering the market relatively to the number of properties for sale. Prices actually achieved, as a percentage of asking price also rose sharply, rising from 94.7% to 95.7%, suggested that sellers are holding out for better offers.

All counties revealed house price rises, with the main hotspots being Leicestershire (2.9%), Hertfordshire (2.7%), North London (2.5%) and North Lincolnshire (2.3%). Counties with the most moderate rises this month were Merseyside (0.1%), South Yorkshire (0.2%), Cumbria (0.5%) and North Yorkshire (0.7%). The North-South divide, which was gradually narrowing last year, is opening up again, with price gains in the northern and western regions being markedly lower than those in the South East and Midlands.

John Wriglesworth, hometrack's housing economist, commented: "The green shoots of recovery seen in January are rapidly turning into oak trees. Record low mortgage rates and receding fears of a recession have buoyed consumer confidence and house buyers are returning to the market in droves. The fundamentals of the housing market remain very strong, and with rises in unemployment moderating we have raised our house price inflation forecast for 2002 to 8% (previously 5%)."

Top 5 performing regions & contributing factors:

Leicestershire (+2.9%): Agents in Leicester confirm a return of the First Time Buyer, which has created a huge demand, with too few properties available. Quite normal for this time of year.

Hertfordshire (+2.7%): Stevenage is a hotspot for activity with large-scale new development, only 28 minutes on the train to Kings Cross. First time Buyers enjoying the benefits of the most attractive mortgage rates in decades.

London - North (+2.5%): Trendy Islington and affordable Harringay are tops in North London, as agents report a frenzy of activity from 'well to do' first time buyers rather than the Investment buyers seen in recent months.

North Lincolnshire (+2.3%): Nearby Hull has experienced some regeneration and property prices have risen quickly. This would appear to have overflowed to North Lincolnshire where land prices are attractive.

Staffordshire (+2.2%): Agents report country homes moving again (One instant when a £1/2 million house attracted almost 20 interested parties in just 2 weeks!) With multiple offers coming in across the board, particularly on First time buyer type property.

Worst performing regions & contributing factors:

Merseyside (+0.1%): Having had a more consistent market toward the end of 2001, the Merseyside area has been slower to take off than some other regions.

South Yorkshire (+0.2%): During the second half of 2001. Yorkshire continued to experience growth, whilst other areas, particularly in the south, experienced a drop in house prices. The growth in South Yorkshire is yet to see such a huge upswing in prices.

Cumbria (+0.5%): Being a seasonal area, the property growth cycle in Cumbria tends to see prices increase in the spring. q North Yorkshire (+0.7%): Similar to Cumbria, the spring tends to see price growth in rural and farming areas.

Shropshire (+0.8%):Rural markets in Shropshire saw modest price increases, which indicate the upswing in the Midlands property scene has not yet reached this far.