LONDON: British house prices surged last month, mortgage lender Halifax said on Friday, a further sign that finance minister Rishi Sunak's decision to extend a property purchase tax cut has again pumped up the housing market.

Mortgage lender Halifax said house prices rose 1.1% in monthly terms during March, the biggest increase in six months, after a flat reading in February.

In annual terms, prices rose 6.5%, the strongest reading in four months and taking the average house price to a record high 254,606 pounds ($348,683), Halifax said.

The survey chimed with data from the Royal Institution of Chartered Surveyors on Thursday, which showed a renewed housing market upturn after Sunak's budget last month.

Sunak extended his COVID-19 emergency cut to a property purchase tax, known as stamp duty, while Britain's economy remained under the strain of social-distancing restrictions.

He also announced a new mortgage guarantee scheme for first-time buyers who cannot afford large deposits.