London still leads the way

The South East saw the second highest increase at 10.9% followed by the East (9.8%) and the South West (6.7%).

London leads the way in terms of annual house price inflation with a 13.5% increase in the year to February, Land Registry data has found.

The South East saw the second highest increase at 10.9% followed by the East (9.8%) and the South West (6.7%).

Mark Posniak, managing director at Dragonfly Property Finance, said: "With the London market where it is, the South East is well positioned for further outperformance in the short to medium term as buyers shift their focus beyond the capital.

"Property investors, both overseas and domestic, are increasingly looking for capital growth and yield potential outside London.

"There will naturally be a degree of uncertainty around Brexit but the sense we are getting is that, however things turn out, it won't be a Black Swan for the UK's property market.

"With demand still strong and supply as weak as it is, the overall trajectory of the market is likely to be up."

On a monthly basis the North West led the way with 1.8% growth, followed by the East Midlands at 1.5%.

London saw a 0.6% monthly increase.

Andrew Bridges, managing director of Stirling Ackroyd, said: “House prices across the country have paused for breath – but London is still dancing to its own tune. In the capital, a steady beat of demand shows no signs of stopping.

“Higher prices aren’t stifling any interest from those living in the capital, even if the mixture of movements is shifting. Not all of London is seeing property prices surges, with the more traditional top of the prime London market much quieter. But this is more than made up for by new, emerging suburbs and the surprisingly affordable parts of central London which still persist."

He added: “As the capital’s population keeps on growing, the London housing market is getting ever warmer and more crowded. This is underpinning solid house price growth for sellers.

"But for buyers and renters it makes entry to the housing ladder ever more difficult. Hundreds of thousands of new homes are the only real answer.

"Mayoral candidates are still reluctant to take on such a massive challenge – but if they want to gain entrance to City Hall on election night, they might have to do more to help Londoners enjoy the success of the house price party.”