PROPERTY prices in Dorset jumped by six per cent between April and June - and continuing price inflation seems to be squeezing out first-time buyers.

The price of an average house in the county hit £238,911 - up from £224,853 in the same period last year.

The figures follow a slight fall between January and March.

Statistics released today by the Land Registry also show the average price of a home in England and Wales is now £199,184 - a rise of 7.71 per cent.

The news has been welcomed by estate agents who say it reflects an upturn in the number of people looking to buy houses.

But there are concerns that first-time buyers will find it even more difficult to get on the property ladder. The figures show the average price of a detached house in Dorset is now £320,640, up from £298,079. The average semi-detached property now costs £261,904 compared to £208,415 between April and June 2005.

A terraced house now costs £185,780 compared to £180,458 and a flat or maisonette £152,598 compared to the previous average of £152, 334.

Matthew Seeley, senior negotiator at Fox and Sons estate agents, which has offices in Dorchester and Weymouth, said: "Property prices are holding up well at the moment and we are finding it is good for selling.

"There are fewer properties coming on the market and the ones that are, are being bought quickly. This could be leading to prices rising." Across the South West region as a whole prices increased by 5.25 per cent from £195,496 to £205,768.

Every region in the country saw a rise in average prices, with the North registering the highest at 11.13 per cent and East Anglia the lowest at four per cent.

Sales in England and Wales were up a massive 23.76 per cent compared with the same period last year.

Mr Seeley said: "This does make it difficult for first-time buyers.

"In fact, we haven't got one first-time buyer registered with us at the moment.

"Of course, this might mean the market is slowing because without first-time buyers we don't have anyone pushing up the ladder from below."