House prices have gone up for the third consecutive month, according to new figures.
There was a 0.4 per cent in crease in property prices in February, according to Hometrack, which is known for being one of the more pessimistic market surveys.
These figures represent the third month in a row that house prices have gone up, with the average house now costing £161,700.
February's 0.4 per cent rise was also the largest monthly increase since June 2004.
Richard Donnell, director of research at Hometrack, said: "A key driver of higher house price inflation over February has been a surge in the number of new buyers coming into the market."
Hometrack's research showed a 26 per cent rise in the number of buyers entering the market last month, which drove demand.
Mr Donnell added: "It is a general shortage of homes for sale that really underpins the growth in average values over the last month."
The lack of supply was particularly evident in the south of England, where house prices shot up by more than two per cent in Cambridge and London boroughs such as Hackney and Newham. To read more Property News, click here.
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