ESTATE agents and building firms are enjoying boom times as house prices continue to accelerate in Gwent with some properties being sold within minutes of coming on the market.

Builders are looking for new sites as homes in current projects fly off the shelf. Heather Vernon, who represents Wimpey Homes in South Wales, said Newport and Gwent were benefiting from an overspill from Cardiff, where the market had shown dramatic improvement and people were being forced to look beyond the capital.

She said the boom was likely to last until the end of July at least, because August was normally a quieter period.

"We are getting really good visitor levels," she said. "These are about 25 per cent ahead of target sales for the year."

David McLean Homes is also looking at more sites in its southern division. New commercial manager Carl Haley said the company was enjoying huge growth in the South West and Wales.

Demand from first-time buyers is at record levels in places such as Rogerstone, where houses are selling rapidly.

All levels of housing are experiencing rises, which means that first-time buyers may still be having difficulty.

But even they are not being put off because mortgage rates are at their lowest for decades. The average house price in SE Wales is currently £83,128, an increase on last year of 14.6 per cent. In some 'hot spot' areas, where business is unusually brisk, prices have risen around 20 per cent.

According to the Principality Building Society, Welsh price rises are the most rapid since its records began.

Its quarterly house price survey shows rises are greatest in SE Wales. Cardiff has the highest average house price at £101,239, then Newport at £74,877.

There is no breakdown for the other five unitary authority areas in Gwent but there are relative increases in all sectors.

Estate agent Peter Alan has identified property 'hot spots', which include St Mellons, and a booming first-time buyer demand in places such as Rogerstone.

Principality chief executive Peter Griffiths said house sales were so strong in some areas that there was a shortage of available properties. More people wanted to buy in South Wales than there were properties available.

"But, looking forward, consumer confidence will dictate the continuing strength of the housing market," he said.