House prices have made the strongest start to the year since 2005, rising more than expected by 0.8%.
Figures from Nationwide show annual growth at 11.2% in January. Its report said demand had remained robust and mortgage approvals were slightly above pre-pandemic levels.
The average price of a home stands at a record £255,556, according to the mortgage lender’s measure.
Since the start of the pandemic in March 2020, the average house price has risen by nearly £36,000.
Nationwide said the housing market was likely to slow this year as the squeeze on households makes them more cautious and mortgage costs rise with the Bank of England raising interest rates to bring inflation back to its 2% target.
