HOUSE prices in south Essex have continued to rise steadily in the past year, new figures reveal.

Despite warnings of an imminent property price slump, a new report from the Halifax shows Westcliff has seen the biggest boom in the past year, with prices rising by 26 per cent.

The average cost of a property there has risen from £163,412 to £206,223 in the past year to September.

Prices in Southend have risen by 19 per cent to an average of £221,438, while in Basildon the average home now costs £177,683 - a 6 per cent rise on the previous year.

But there are signs of a slowdown, with prices in the South East rising by just 1.8 per cent in the third quarter of 2007.

This is a smaller increase than in previous quarters, but a demand for suitable properties still means prices are rising.

David Whitehead, regional manager of Halifax Estate Agency, said: "Lack of supply continues to keep house prices strong in the South East.

"Both on an annual and quarterly basis, house price growth in the South East is ahead of the UK average."

He added: "When looking at house price growth, compared to other UK regions, the South East experienced one of the biggest average increases over the last quarter - second only to Greater London at 2.3 per cent."

During the past ten years, flats and maisonette properties in the South East have seen the strongest growth, increasing 252 per cent from an average price of £51,481 in 1997 to £181,056 in 2007.

Ian Hines, senior property consultant at Clarkes Estate Agency, at Cuckoo Corner, Prittlewell, said: "It's shifting now towards more of a buyers' market.

"Prices are going to remain pretty much stable at the moment.

"But there are certain agents who are valuing properties too high to get them on the books."