House prices dipped slightly in February, Halifax says, recording a 0.1 per cent fall.

On an annual basis, house prices grew 5.2 per cent, the lender adds, with the average house price coming to £251,697.

Quarterly, this equates to a 0.5 per cent change.

It has been a soft start to 2020, says Halifax managing director Russell Galley, and “the housing market has been at something of a crossroads.”

However, recent budget announcements, such as the extension to stamp duty and the mortgage guarantee scheme have “removed a great deal of uncertainty for buyers with transactions yet to complete”.

He adds that the long term housing market performance “remains inextricably linked to the health of the wider economy.”

James Pendleton property expert Lucy Pendleton says: “Now that the stamp duty holiday has been extended, there is nothing standing in the way of a string of new record highs over the coming months.

“While pumping up property prices is unlikely to have been the chancellor’s aim, he has effectively fired the starting gun on what is set to be a second honeymoon for house price gains.

“Annual house price growth has now been above 5% for seven consecutive months. It will be fascinating to see how long the market can hold on to that growth, but of course such a hot market isn’t welcomed by first-time buyers who will be relying heavily on the government guarantee mortgages that are now going to be available to them.”

And Radstock Property co-founder George Franks says: “March is likely to see a much more pronounced rise in house prices due to the extension of the stamp duty holiday and the new mortgage guarantee scheme.

“Since the Budget we have already noticed an uptick in prospective buyers and this is likely to continue.

“Prices are also being supported by a phenomenal lack of stock. For now, in the capital at least, properties for sale are as rare as hens’ teeth.

“London is in a log jam. The top end want to get out but there is nowhere to go, which means people can’t move up.

“The Halifax is right that the economy and jobs market are key to the trajectory of prices this year, but we believe demand will remain relatively strong as it still costs less to own than to rent and mortgage rates are extraordinarily competitive.”