Britain’s house inflation races on

British house price inflation in February rose at its fastest pace since October, the government said, suggesting two interest rate rises have done little to diminish consumers’ appetite for debt.

The average cost of a home rose 9.8% from a year ago to £160,937 ($294,145), after a 9.7% gain the month before, the Office of Deputy Prime Minister John Prescott said.

Prices fell 1% on the month, less than the 1.1% decline in February 2003.

“There are signs of a re-acceleration in house prices,” said John Butler, an economist at HSBC Holdings Plc.