House prices hit “all-time high”

Annual house price growth picked up to 3.7% in August, and prices are up two percent month-on-month, the index shows.

The increase last month was the highest since February 2004, when house prices rose by 2.7%.

Robert Gardner, Nationwide’s chief economist, said: “House prices have now reversed the losses recorded in May and June and are at an all-time high.

“The bounce back in prices reflects the unexpectedly rapid recovery in housing market activity since the easing of lockdown restrictions. Moreover, social distancing does not appear to be having as much of a chilling effect as we might have feared, at least at this point.

“These trends look set to continue in the near term, further boosted by the recently announced stamp duty holiday, which will serve to bring some activity forward.”