The average home is now worth £172,000, and the rise in February means that annual house price inflation is now at 6.4%, the highest level since June 2003.
Demand for housing continues to outstrip supply – Hometrack reported that, while the number of homes registered with estate agents rose by 14% in February, the number people wanting to buy rose by 23%.
The lack of available housing led to rises in house prices across 42% of the country, though two-thirds of the price rises were concentrated in the South of England.
Hometracks Director of Research, Richard Donnell said the figures indicate a sellers market:
“Despite the January rate rise it seems that a lack of supply is continuing to support higher prices.
“As a result we are seeing property transactions and pricing being set by those who can afford to move – that is to say existing owner occupiers, buy-to-let investors and the growing number of assisted first-time buyers.
In London, house prices rose by 1.3% in February, by 0.9% in the South East, 0.7% in the South West and 0.6% in East Anglia.
Elsewhere in the country, price increases were much smaller, with Yorkshire, Wales, the East Midlands and Humbersides prices increasing by just 0.1%.