According to the report from Halifax Bank of Scotland, house prices in February were 2.8% higher than in the same month a year earlier. Economists had expected a 4.0% increase. On a monthly basis, house prices rose by 0.3%. Economists had expected a 0.2% increase.

In the latest quarter (December to February) house prices were 2.9% higher than in the preceding three months (September to November)

Russell Galley, Managing Director, Halifax, said: "The UK housing market has remained steady heading into early spring, with house prices increasing by 0.3% in February and up 2.8% on the previous year. 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."