Average UK house prices rose by 1.4% in the last month alone, according to Halifax, marking the biggest increase for six months.

The boost has taken the average property price to another new record high of £282,753, said the lender.

It added that, two years on from the first lockdown, house prices have now risen by £43,577, with annual house price inflation now at 11%.

Russell Galley, managing director of Halifax, said: “With 2021’s strong momentum continuing into the beginning of this year, the annual rate of house price inflation (11%) continues to track around its highest level since mid-2007. The new record price of £282,753 is up some £28,113 on a year ago, not far off average UK earnings over the same period (£28,860).”

Halifax added that it was an imbalance of supply and demand that was pushing up house prices, with too many buyers chasing too few properties.

Galley noted: “The effect on house prices makes it increasingly difficult for first-time buyers looking to make their first step onto the ladder, but also challenges homemovers who face ever bigger leaps to move up the rungs to a larger property.”

Nicholas Finn, managing director of Garrington Property Finders, added: “Demand from buyers continues to crank up and the supply of homes for sale simply cannot keep up.

“The tension between these two opposing forces is steadily pushing property prices upwards. Such rapid rises are unsustainable as they will eventually freeze out more first-time buyers and choke off demand.

“But for now, buyer demand continues to grow, and neither the rise in interest rates – which is making mortgages more expensive – nor runaway inflation – which is eroding people’s spending power – have cooled things down meaningfully.”