Property prices in Brighton and Hove are rising by more than £500 a week, the fastest rate since records began.

The average asking price for residential property jumped £27,000 last year, making the city the fastest growing property market in Britain. The figures from Land Registry mean a typical home is now earning more than its owner. Nationally, the monthly worker is on a gross salary of £23,000. Statistics show the average salary in Brighton and Hove is £26,461. The price of a typical home in Brighton and Hove had reached more than £217,000 by March.

Last month, a report from financial analyst Datamonitor warned of a threat that a sharp fall in prices could be on the way. Karina Purang, the reports author, said: “Undoubtedly, house prices cannot keep going up for ever.”

Hugh Tucknott, of the Brighton and Hove Estate Agents Association, said: “It is great news for people with property, but the rate of increase is quite frightening for everyone else.

“It is becoming very difficult for first time buyers to get on to the ladder. There simply are not enough homes at affordable prices. There is an urgent need for more one and two-bedroom homes.”