“Stock levels haven’t reached their spring peak and there are hordes of buyers chasing a relatively small pool of homes.
“Demand is totally eclipsing supply and that’s forcing buyers to chase prices just as they were in September and October.”
Monthly property sales rose in February 2021 to their highest level since March 2007.
The 147,050 transactions were up by 23 percent on January’s total, said Government data.
Tomer Aboody, director of property lender MT Finance, said: “What we are seeing is a real lack of stock which in turn increases competition and house prices.”
“The continuation of Government support measures has been key in boosting confidence in the housing market.”
Halifax predicts a busy property market through the summer as consumer confidence is boosted by the vaccine rollout.
Buyer demand is still being fuelled by a desire for larger properties and more outdoor space, as work-life priorities have shifted during the pandemic.
Mark Harris, chief executive of mortgage broker SPF Private Clients, said: “With hardly a day going by without another lender launching a high loan-to-value offering, and indeed rates coming down on these, there is plenty to tempt borrowers.”