House prices increased by 8.6% in the year to February, marking the highest annual growth rate in more than six years, according to the latest figures from the Office for National Statistics.
The annual increase was up from 8% in January and the biggest year-on-year jump since October 2014.
However, month on month prices across the UK remained flat at £250,341.
England saw the biggest annual increases, with prices up 8.7% to £268,000, followed by Wales where prices rose 8.4% to £180,000, Scotland where they increased by 8% to £162,000 and Northern Ireland with a rise of 5.3% to £148,000.
The North West was the English region to see the highest annual growth with prices soaring by 11.9% to £184,351, while London saw the lowest with prices climbing 4.6% to £496,269.
Legal & General Mortgage Club director Kevin Roberts says: “Demand for homes has been remarkable since the start of the year and this has contributed to the house price increases seen in recent months.
“For existing homeowners and those looking to sell their property this will be welcomed news and helps put to bed concerns of a price crash in the wake of the coronavirus crisis.
“Of course, it is important that the whole industry works together and with policymakers, to ensure this growth is sustainable.
“By this, we mean supply must be boosted to keep pace with demand, ensuring the prospect of homeownership is an affordable reality for all; and also that these new homes are designed and built in ways that supports our country’s net zero emissions targets.
“Creating sustainable homes, at scale, is the key to a successful future for the UK housing market and delivering that is an ambition we in the industry, as well as Government, policymakers and regulators, must all share.”
Trussle head of mortgages Miles Robinson adds: “UK house prices are continuing to increase month-on-month, which suggests the stamp duty holiday is maintaining market buoyancy into the spring.
“However, it’s worth bearing in mind that house prices could fall when the stamp duty holiday ends.
“At the moment, the increased demand is creating a false economy of bidding wars and a lower stock of available properties.
“In addition to this, there’s been a reported increase in homes that have sold for inflated prices being down valued at the survey stage within the mortgage process.
“It’s also important to note that as a result of this demand, the current wait time to receive a mortgage approval and complete on a property in the UK is 171 days.
“We would advise all buyers to be prepared and use a stamp duty calculator to factor in potential stamp duty costs should they not complete on their purchase before the deadline.”
