Annual house price growth edged up to 10.1%, based on the quarterly figures to March, according to the latest report from Halifax.

Plus the average property price rose 2.9% between the last quarter of 2015 and quarter one of 2016, and a massive 2.6% in March alone, taking the average UK property price to £214,811.

However Martin Ellis, Halifax housing economist, warned: “Worsening sentiment regarding the prospects for the UK economy and uncertainty ahead of the European referendum in June could result in some softening in the housing market over the next couple of months.”

Brian Murphy, head of lending at Mortgage Advice Bureau (MAB), added that this latest sharp rise would be bad news for first-time buyers. He said:

“Although this may come as another blow to those trying to get their foot on the property ladder, today’s rock-bottom mortgage rates and the huge number of products available means mortgages are far more affordable than we have seen in a very long time.

“However, meeting stringent affordability criteria and saving up for a deposit are significant hurdles hopeful homebuyers have to jump over before they can take advantage of today’s low-cost mortgages.”