LOW interest rates and a shortage of property helped house prices surge ahead by more than 8 per cent during the last quarter of 2001, figures suggested today.

The Land Registry said property prices rose by 8.46% during the last three months of 2001, compared with the same period the previous year.

The leap in house values pushed the cost of the average property in England and Wales up to £118,827, further stoking concerns about affordability.