This was up from the 6.8 per cent annual increase in January.

House prices grew by 9.7 per cent in England, 5.3 per cent in Wales, 2.4 per cent in Scotland and 2.8 per cent in Northern Ireland.

Annual house price increases in England were driven by rises in London of 17.7 per cent, the South East by 8 per cent and the East of England which saw growth of 7.7 per cent.

Excluding London and the South East, UK house prices increased by 5.8 per cent in the 12 months to February 2014.

Stephen Smith, director of Legal & General Mortgage Club and housing, said: “Policy makers cannot make decisions that will impact the whole country based simply on what is happening in London.

“The government needs to maintain a balancing act between stimulating growth in some areas and ensuring that London and the South East don’t become unaffordable to families.”

In February, prices paid by first-time buyers were 10.5 per cent higher on average than in February 2013.

For existing owners, prices increased by 8.6 per cent for the same period.

Nicholas Ayre, managing director of homebuying agency Home Fusion, said affordability was the main issue.

“Sellers are in the fortunate position of being able to ask what they like,” he said.

“The market has a 2007 feeling – if you don’t buy now and pay that extortionate price, there is a long queue of people behind you ready to jump in.

“With property prices up 10.5% for first-time buyers compared with a year ago, many people are in danger of being priced out again.”