Annual house price growth slipped back to 2.8 per cent in February from 4.1 per cent in January, the latest Halifax index revealed amid warnings about the likely impact of Coronavirus on the market.

While annual growth slowed, prices were still 0.3 per cent higher month on month, reaching £240,677.

On a rolling quarterly basis, prices were up by 2.9 per cent on the previous three months.

Halifax managing director Russell Galley says: “The UK housing market has remained steady heading into early spring.

“Much like we saw in January, the increases seen in February reflect the continued improvement of key market indicators. 

“The sustained level of buyer and seller activity is strong compared to recent years, with positive employment conditions and a competitive mortgage market continuing to support demand.

“Looking ahead, there are a number of risks, including the potential impact of coronavirus, which continue to exert pressure on the economy and we wait to see how these will affect housing market sentiment later in the year.”

Stone real estate founder Michael Stone says: “We have seen the dark clouds of Brexit inspired uncertainty hang over the market for some time causing a drop in price growth and transactions. 

“However, just as they finally start to make way for blue skies and buoyant price growth, there could be another storm front rolling in in the form of the threat from the Coronavirus.”

Stone says this could lead to a reduction in foreign investment, which would weigh down on house prices, but strong demand from UK buyers could help to offset any downturn.

Benham and Reeves director Marc von Grundherr says: “Further signs that the UK property market has awoken from its politically induced slumber and is firing on most, if not all cylinders so far this year.

“That said, our latest market temperature test on buyer and seller sentiment found that 17 per cent of people have already put their current or future plans to transact on hold due to the threat of the Coronavirus. 

“If this hesitation were to spread as rapidly as the cause itself, we could see current growing momentum peter out as market activity stalls once again.”

But he adds: “The good news is that the vast majority still remain undeterred and we will no doubt see these ranks bolstered as a result of this month’s Budget, with a cut in interest rates the very least that should be on the cards to help maintain market confidence.”