Average house prices rose by a little over £3,000 in August as the property market reversed losses made during the pandemic and hit a new all-time high.
The cost of a home in the UK hit £224,123 in August, a 2pc increase from the month before, according to the Nationwide building society. It also marks a rise of 3.7pc compared to August last year.
Nationwide said that the market had recovered “unexpectedly” rapidly.
Nationwide chief economist Robert Gardner said: “House prices have now reversed the losses recorded in May and June and are at a new all-time high.
“The bounce-back in prices reflects the unexpectedly rapid recovery in housing market activity since the easing of lockdown restrictions.
“This rebound reflects a number of factors. Pent-up demand is coming through, where decisions taken to move before lockdown are progressing.
“Behavioural shifts may also be boosting activity, as people reassess their housing needs and preferences as a result of life in lockdown. Our own research, conducted in May, indicated that around 15% of people surveyed were considering moving as a result of lockdown.”
It came as FTSE 100 housebuilder Barratt reported a surge in enquiries for new homes over the summer.
“The increased activity levels are being stimulated by a combination of pent-up demand, the Stamp Duty holiday and an understanding that Help to Buy will only be available to first time buyers and regional home price caps will exist from April 2021,” the company said.