Increases in house price inflation continued into April, as the market continues to look healthy, according to the Halifax. Activity is also rising, with the sixth successive rise in sales agreed last month.

Regionally, the report found that house price growth continues in the north of England as well as Scotland, but Cupar in Fife is the current property hotspot, where prices rose 36% over the past twelve months. All the top four towns for house price inflation were in Scotland, with Lochgelly, Coatbridge and Lanark hot on Cupar?s heels.

The survey reported that this robustness in the market is supported by solid fundamentals: a strong economy, high levels of employment and low interest rates, factors which are expected to continue to support the market for the remainder of the year.

Martin Ellis, Chief economist at Halifax said that the house prices may not continue to grow at the same rate over coming months: ?Whilst the market may remain buoyant over the coming few months, we expect the recent softening in the labour market and the continuing high level of house prices in relation to earnings to curb demand.

?Alongside higher utility and council tax bills, these factors should lead house price growth to moderate in the second half of 2006,? he continued.