This surge has seen the average UK house price reach £178,249, nearly £14,000 higher than the average price last March.
The house price increases seen in this quarter were 2.3% higher than the final quarter of 2013, the biggest quarterly growth in four years, showing that house prices are increasing within the short-term as well as the long-term.
The 8.7% annual rate of increase recorded this March is also an increase from the annual rate recorded in February, which was 7.9%.
The Halifax House price index also showed that home sales increases for the tenth successive month in February to reach 108,940, 32% higher than the number of sales recorded in the same month last year.
This price hike is said to the result of government incentivising policies intended to re-energise the housing market, especially the introduction of the Help to Buy Scheme which has recently been extended until 2020.
This extension has increased accessibility to the housing market amongst first-time buyers, which has meant more of the population are now able to purchase housing, causing competition to rise which has resulted in the current price hikes.
The LSL first-time buyers’ barometer documents this increased accessibility by surveying tenants registered with Your Move and Reeds Rain, where they found that in January, only 10% believed they would never be able to afford to buy, which is lower than those surveyed in December (12%) and far lower than in December 2012, when 20% of tenants ruled out any hopes of purchasing a property.
The LSL report showed that 20% of tenants now expect to buy within the next year and a further half (48%) believe they will be able to buy within the next five years.
Low interest rates and improving consumer confidence are also indicated as factors for the continuing upturn in the market.