The effect of the Bank of England's three interest rate rises began to take effect this month as underlying domestic housing demand weakened due to stretched affordability issues.
But due to a chronic lack of supply in the housing market, house price inflation continued to hold strong, increasing by 0.7 per cent on January's figure and rising to 10.2 per cent for the year, compared to just 9.3 per cent a month ago, according to research by Nationwide.
This means that the average house price in the UK is now £174,706, up from £173,225 last month, but experts believe that this is a fluctuation indicative of the lack of properties available rather than a long-term trend.
Fionnula Earley, Nationwide's chief economist, explained: "While the three recent rate rises now seem to be starting to take their toll on the market, not all indicators are cooling just yet.
"Buyer interest and mortgage demand are waning, but the supply of properties coming onto the market remains low.
"This lack of supply will mean that house price inflation will remain firm for a while longer, before gradually easing."
The average home in the UK has gained £16,000 in value over the last 12 months, equivalent to a rise of over £40 a day.
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