The average UK house price has risen by more then £30,000 since the start of the pandemic in March 2020, according to the latest Nationwide House Price Index.

Annual house price growth stood at 9.9% in October, having dropped marginally from the 10.0% growth recorded in September.

Average house prices climbed by 0.7% on a monthly basis during October, after taking account of seasonal effects.

The figures have taken the average UK house price to £250,311, which is an increase of £30,728 since the pandemic hit the UK in March 2020.

Nationwide chief economist, Robert Gardner, said that demand for homes has remained “strong”, despite the expiry of the stamp duty holiday at the end of September.

“Mortgage applications remained robust at 72,645 in September, more than 10% above the monthly average recorded in 2019,” Gardner said. “Combined with a lack of homes on the market, this helps to explain why price growth has remained robust.”

However, Gardner also warned that the outlook for the housing market remains “extremely uncertain”.

“If the labour market remains resilient, conditions may stay fairly buoyant in the coming months – especially as the market continues to have momentum and there is scope for ongoing shifts in housing preferences as a result of the pandemic to continue to support activity,” he added.

“However, a number of factors suggest the pace of activity may slow. It is still unclear how the wider economy will respond to the withdrawal of government support measures. Consumer confidence has weakened in recent months, partly as a result of a sharp increase in the cost of living.

“Even if wider economic conditions continue to improve, rising interest rates may exert a cooling influence on the market, though the impact on existing borrowers is likely to be modest.”

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