UK house prices increased by 2.8% in February compared to the same month a year earlier, the latest Halifax House Price Index has revealed.

Halifax also announced that house prices in February had risen on a monthly basis by 0.3% with the average price growing to £240,677.

Halifax’s Index highlighted figures from HMRC, which showed monthly property transactions data had seen a rise in UK home sales in January. UK seasonally adjusted residential transactions in January were 102,810 – up by 4.1% from December – and the highest level since July 2017.

Mortgage approvals also saw a rise from December, with the Index including Bank of England figures that showed the number of mortgages approved to finance house purchases was 70,888 in January – reflecting a 4.4% monthly rise, after a 3.0% increase in December.

Halifax managing director, Russell Galley, commented: “The UK housing market has remained steady heading into early spring, with house prices increasing by 0.3% in February and up 2.8% on the previous year.

“Much like we saw in January, the increases seen in February reflect the continued improvement of key market indicators. The sustained level of buyer and seller activity is strong compared to recent years, with positive employment conditions and a competitive mortgage market continuing to support demand.

“Looking ahead, there are a number of risks, including the potential impact of coronavirus, which continue to exert pressure on the economy and we wait to see how these will affect housing market sentiment later in the year.”

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