Annual UK house prices up 6.9% in February in ‘surprise’ increase

The mortgage lender had thought it more likely growth would soften ahead of the stamp duty holiday ending.

Gardner said: “While the stamp duty holiday is not due to expire until the end of March, activity and price growth would be expected to weaken well before that, given that the purchase process typically takes several months.”

However, there have been reports Chancellor Rishi Sunak could extend the discount period.

Nationwide’s Gardner said: “It may be that the stamp duty holiday is still providing some forward momentum, especially given the paucity of properties on the market at present. Shifts in housing preferences may also be providing a more significant boost to demand, despite the uncertain economic outlook.”

He said: “There is scope for shifting housing preferences to continue to boost activity, especially if there is further policy support in the Budget. Nevertheless, if labour market conditions weaken as most analysts expect, it is likely that the housing market will slow in the months ahead.”