Prices rose by 1.1 per cent in March after no change in February, taking the annual rate of price growth to 5.3 per cent.
This will now bring the average house price up to £162, 083, which is more than £8, 000 than at this time last year, the equivalent of a £22 per day price increase.
Fionnuala Earley, Group Economist at Nationwide, said: The pick up in prices in March continues the upward trend we have seen since the autumn, which has been supported by a solid return of buyers.
According to Nationwide, activity this strong has not been seen since the late Spring/early Summer of 2004 when annual house price growth was almost 20 per cent.
Although, the building society dont expect house prices to continue to accelerate, with an increase in household bills putting extra strain on buyers.
Earley said: Utility and council tax bills are rising and on top of this, affordability continues to be squeezed as house prices rise further. First time buyers now spend about 40 per cent of their take home pay on mortgage payments.
There were 115, 000 house purchase approvals in February, well above the 10 year monthly average of 100, 000.
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