Monthly house price inflation reached its steepest level for 12 months in February at 0.6%, Your Move’s house price index has revealed.
This was double the rate of January, though is a long way off the 2.1% monthly increase in February 2016.
Annual inflation still fell to 2.4% in February, down from 3.9% the month before and the lowest level since 2013.
Oliver Blake, managing director of Your Move and Reeds Rains estate agents, said: “It’s an encouraging start to 2017.
“We’ve seen the strongest house price growth in a year, the emergence of the promised Northern Powerhouse and the first tentative signs of a recovery in our highest priced properties in London.
“The good news too is that the number of first-time buyers grew last year and housebuilding was up – although homeownership is now at its lowest level in over three decades.”
Growth in property sales in Greater Manchester in the three years to 2016 was six times that of Greater London, while the index said there was heavy demand for apartments in Liverpool from both young professionals and buy-to-let investors.
As of January the East of England (5.9%), South East (5.2%) and South West (4.7%) lead the way on house price growth.