HOUSE prices in Brighton and Hove have increased more than 11% in the past year.

Data from the Land Registry shows prices in the city increased 11.1% between June 2014 and June 2015, with average prices now at £278,594.

Prices have also gone up by 10% in West Sussex over the past year and 6.6% in East Sussex.

Low mortgage rates and a tight supply of homes for sale are thought to be the reasons behind the recent increase, according to experts.

Phil Graves, of Graves Jenkins estate agents in Brighton, said: "Another leap in the value of house prices in the city doesn't surprise me at all. Activity levels continue to be very high and with low interest rates coupled with a lack of supply hitting the market, prices have to increase.

"My concern however is on two levels. One being that this rate of increase cannot be sustainable and the second is that many people have now been outpriced from the market. We desperately need to build more affordable homes for key workers."

Across the country, house prices have surpassed their 2007 peak to reach a new average high of £181,619 across England and Wales.

The average house price in London has reached £481,820. Other areas which have seen increases over the last year include Bath and Somerset (9%), Hertfordshire (11.1%) and Slough (12.9%).

But with Bank of England governor Mark Carney recently indicating that the base rate could start to move up from its historic 0.5% low around the end of the year, some analysts have said that the cheap mortgage deals on offer may not be around for much longer.

Andrew Montlake, director at Coreco Mortgage Brokers, said house prices are likely to hold firm for the rest of the year as demand for property remains strong while the supply of good quality stock continues to be an issue.

Campbell Robb, chief executive of Shelter, said: "When house prices soar by this much in a single year thanks to our housing shortage, it's clear that for millions of people across the country, a home of your own is fast becoming a pipe dream."