House price growth sped up in February, rising 1.7% over the month, according to Nationwide.

The lender said the average house price now exceeds £260,000 for the first time, having risen £29,000 over the last year alone.

Annual UK house price growth increased to 12.6% in February, from 11.2% in January.

Robert Gardner, Nationwide’s chief economist, said: “The price of a typical home is now £44,138 (20%) higher than in February 2020 – the month before the pandemic struck the UK.

“The continued buoyancy of the housing market is a little surprising, given the mounting pressure on household budgets from rising inflation, which reached a 30-year high of 5.5% in January, and since borrowing costs have started to move up from all-time lows in recent months.”

Rob Gill, founder of London-based Altura Mortgage Finance, added: “February saw the property market once again defy logic, as demand remained robust. First-time buyers, in particular, have been taking advantage of decreased competition for flats, especially those without outside space, as families seek to trade up for more space in the post-pandemic era.

“Flats also have less competition from landlords who have faced an increasing squeeze in recent years from lower tax breaks and higher regulatory costs.”