The average cost of a property has jumped almost £30,000 since the start of the pandemic.
New data from Nationwide has found property prices to hit record highs and the cost of an average home now costs over £250,000 for the first time.
Robert Gardner, Nationwide’s chief economist, commented: “Combined with a lack of homes on the market, this helps to explain why price growth has remained robust.”
“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.”
“For example, on the average mortgage, an interest rate increase of 0.4 per cent would raise monthly payments by £28 to £625 (or around £335 extra per year), though a rise of bank rate to 1 per cent would see typical payments go up by a more substantial £64 to £660 (more than £760 per year approximately).”
“It’s important to note that a small proportion of households already have a relatively high debt service burden,” he added.