New data from Nationwide shows that the house price growth for May compared with the same time last year was the highest it has been for close to seven years.

These figures reveal a 10.9% annual increase in the UK average price of a home, while the average price for May compared with the month before went up by 1.8%. This took the average UK house price to £242,832 – which is a record high and means that it has increased by £23,930 during the last year.

The Chief Economist for Nationwide, Robert Gardner, stated that the past year had really seen the UK housing market transformed, after it experienced a drastic decline last spring when the initial COVID-19 lockdown was announced.

Gardner went on to say that, although the decision to extend the holiday on paying stamp duty had helped create another spike this spring, the ongoing boom had more to do with the fact that people were looking for different features from a property in the aftermath of the lockdowns.

Although this news is positive in some respects, Tracy Crookes from Quilter told FT Adviser that it had drawbacks for those hoping to buy:

“It really is a seller’s market at the moment, and with house prices at their highest level in nearly seven years it is a hostile environment for first time buyers who would have struggled to afford to buy even before the pandemic.”

Advisors must use their CeMAP know-how to find specialist lenders for these buyers.

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