UK house prices jumped 9.4 per cent in the 12 months to February and by 0.6 per cent during the month alone, new data shows.

The Nationwide Building Society said the rate of growth has not been seen for four years; although, at £177,846 the average house price remains five per cent under its 2007 peak.

Nationwide’s chief economist Robert Gardener, said low interest rates and growing consumer confidence were the main causes.

“Demand continues to be supported by record low interest rates, improved credit availability and rising consumer confidence thanks to the healthy gains in employment recorded in recent quarters,” he said.

But he added that a low number of available homes was also a major factor.

"Price growth is being supported by the fact that the supply of housing remains constrained, with housing completions still well below their pre-crisis levels, which was already insufficient to keep up with the pace of household formation.”