According to the Halifax house price index, UK house prices strengthened in the first three months of 2018 by 2.7 percent.

The average price of a UK home increased by 1.5 percent in March and costs £227,871. Despite rising house princes, Halifax has warned of volatile monthly changes.

“Activity levels, like house price growth, have softened compared with a year ago,” said Russell Galley, the managing director at Halifax.

“Mortgage approvals are down compared to 12 months ago, whilst home sales have remained flat in the early months of the year. This lack of direction in the housing market is in stark contrast to the continuing strength of the UK jobs market,” he added.

Galley believes that the low unemployment, low mortgage rates and shortage of properties for sale would be the driving force behind stronger house prices in the coming months.

Halifax has predicted an annual price growth to continue at a level similar to three percent.

The chief UK economist at Pantheon Macroeconomics, Samuel Tombs, has warned that the figures should not be taken as a definite signal that UK house prices will continue to increase.

“Activity levels, like house price growth, have softened compared with a year ago. Mortgage approvals are down compared to 12 months ago, whilst home sales have remained flat in the early months of the year. This lack of direction in the housing market is in stark contrast to the continuing strength of the UK jobs market,” he said.

In contrast, Nationwide (LON: NBS) reported a 0.2 percent slump for March to £211,625.

“Consumer confidence has remained subdued, due to the ongoing squeeze on household finances as wage growth continues to lag behind increases in the cost of living,” said Robert Gardner, the Nationwide chief economist.