House prices increased by 3.2 per cent in February, according to figures released today.

The latest Rightmove house price index reported the swing after a 0.8 per cent fall across January.

Most regions in England and Wales saw prices increase, with the East Midlands leading the way with a rise of 5.8 per cent.

Analysts remained cautious about the news however, and said that increases may be down to sellers trying their luck following interest rate cuts interest rate cuts.

“Most sellers obviously want to achieve as much as possible for their property, and traditionally they choose to test a more ambitious price early in the year as they have plenty of time to adjust it down later,” said Miles Shipside, commercial director of Rightmove.

His opinion was echoed by Global Insight analyst Howard Archer: “While the spike up in asking prices this February was admittedly pronounced, it followed particularly marked recent falls and may well be the consequence of sellers pushing their luck in the hope the recent interest rate cuts will boost demand.”