HOUSE prices in Ebbw Vale rose by a staggering 32 per cent in the last year according to new figures released today by one of Britain's biggest mortgage lenders.

Average house prices in the town burst through the £100,000 mark during the last year, with the average price now £123,753 compared to £93,469 a year ago.

That makes it the latest Welsh property hotspot.

The rise in the housing price boom town is the highest in any town in Wales and the seventh highest in England and Wales.

The latest Halifax Price Index survey shows prices in Blaenau Gwent as a whole have risen by 20 per cent, from £93,341 to £112,255.

Estate agent Tracy Lewis, manager of the Brynmawr branch of Bairstow Eves Ltd, said the relatively low prices in Ebbw Vale and the whole of Blaenau Gwent are attracting buyers from outside the area looking to get on the property ladder or make an investment.

"The root cause of the rise is the fact that we are still the cheapest area in the country - well below the average still," she said.

"It's bringing in a lot of people from Bristol and further afield which is making it very difficult for young local couples."

The average annual increase in Wales is 12.5 per cent in the past year, with a 4.9 per cent increase so far in 2007.

Average prices in Monmouthshire have broken the £200,000 barrier for the first time after a seven per cent increase from £198,030 to £211,155.

Newport has also seen a seven per cent increase since April 2006, rising from £136,929 to £147,087.

Caerphilly and Torfaen also experienced strong rises of 16 and 15 per cent respectively.

Tim Crawford, economist from Halifax estate agents, said house price increase in Wales were stronger than England, where the annual increase was 11.1 per cent.