Low supply is propping up the housing market as it has been rocked by property tax changes and uncertainty over the UK consumer's spending power.
There are now 10 buyers for every property on sale in England and Wales, which Haart estate agents said was a "gap that is set to widen".
House prices grew 2.6 per cent year-on-year in February, according to data from Haart. The rise in prices came on the back of a strong comparable year; in March last year, prices were pushed up as buy to let investors rushed to close property deals before the increase in stamp duty came into effect.
However, month-on-month, the average UK house price fell 1.4 per cent to £232,942. In London, the average house price was £552,150, down 0.7 per cent on the month before.
First-time buyers are now more active in the market, as landlords have been scared off by the three per cent stamp duty hike. The number of first-time buyers looking for properties grew 11 per cent month-on-month in March.
Paul Smith, chief executive of Haart estate agents, said that the relative stability of the housing market was "truly remarkable" after a "turbulent year".