The price of houses in the UK experienced the biggest monthly increase in five years when growth of 2.4% took place in February.
Analysts had predicted an increase of 0.7%, so the figure caused heads to lift, with one warning that prices are “approaching madness”.
The average house price in the UK is now £179,872.
House prices advanced 7.9% on an annual basis, according to the latest Halifax House Price Index. This was the biggest annual hike since October 2007, leaving values 10% below that peak period.
Prices are continuing to accelerate, bringing the concern for a property bubble back into focus. The Government has been urged to slacken its Help to Buy and other policies it created to support the housing market.
Stephen Noakes, mortgages director for Halifax, said the improving economy, falling unemployment, growing consumer confidence and low interest rates are all boosting the market.
