BUYING a home is beyond the reach of even more local people after figures showed house prices rising more than 12.2 per cent in a year.

Latest figures show the value of property rising by an average of almost £68 a day.

Rightmove's House Price Index for March, published today, shows a monthly rise of 1.5 per cent in average home values - taking the cost of a typical home to more than £228,183.

The rises will be keenly felt locally, with an average property in Poole costing £232,445 even at the end of last year.

The average in Bournemouth stood at £203,563, and in Christchurch at £250,326.

Nigel Price, managing director of Goadsby Residential, said Rightmove's claim of a 12.2 per cent annual price rise seemed about right.

"I think it's just a question of supply and demand.

"There has been very good demand for properties, which has most probably been exceeding supply," he said.

He added that rises in interest rates had not led to a slowdown.

"The first rise this year didn't seem to make a whole lot of difference.

"We're sensing a little bit more caution out there. I think people are still buying but a little bit more cautiously," he added.

And he warned that double-figure price rises were not sustainable.

"Long-term, 12 per cent a year isn't going to work.

"Three to four per cent a year would be more manageable," he said.

David Slade, senior partner with Dorset-based Slades Estate Agents, said he had not seen growth as high as 12 per cent.

"There's a cross-section. A couple of my offices have suggested that asking prices are on the increase but not necessarily achieved prices.

"New properties coming onto the market have probably this year seen a three to five per cent increase on what we were asking last year," he said.

He said interest rate rises had not had a dramatic effect because many people had fixed rate mortgages.

l See page 13 for more news on the housing market.