House Prices continue to rise inevitably leading to an increase in Interest Rates.

The annual rate accelerated to 10.2 percent from 9.3 percent last month, taking the average house price to 180,314 pounds.

The robust reading pushed the pound higher with investors taking it as another sign the Bank of England will undoubtably raise borrowing costs in May.

The ongoing strength in house prices is of concern to the Bank of England and added to the fact that inflation is at 3.1% adds pressure for higher interest rates

There is a very real risk that interest rates could rise further still after May's widely expected increase, which will be a major worry to potential house buyers.

A rise in borrowing costs to 5.5 percent next month is regarded as a done deal after a month of strong economic data, with inflation spiking to its highest levels since comparable records began.

Some economists believe borrowing costs might even have to rise as high as 6 percent to cool price pressures.

The BoE has raised rates three times since August to 5.25 percent, and there are signs that those increases are starting to feed through to the housing market.

The trend in price growth showed some signs of cooling, with prices rising 2 percent between February and April, the lowest three-monthly rate since August.