Average house price hits a record new high
The average price of a property has tipped over £245,000 for the first time on record, according to an index.
Halifax said the average UK house price in August was £245,747 – 5.2% cent higher than the same month a year earlier.
But with household incomes under pressure and job loss announcements mounting, the report said it is "highly unlikely" that current levels of house price growth will be sustained.
A downward pressure on house prices is expected to build in the medium term.
Russell Galley, managing director at Halifax, said: "Annual growth now stands at 5.2%, its strongest level since late 2016, with the average price of a property tipping over £245,000 for the first time on record.
"A surge in market activity has driven up house prices through the post-lockdown summer period, fuelled by the release of pent-up demand, a strong desire amongst some buye r s to m ove to b i g ge r properties, and the temporary cut to stamp duty.
"Notwithstanding the various positive factors supporting the market in the short term, it remains highly unlikely that this level of price inflation will be sustained.
"The macroeconomic picture should become clearer over the next few months as various Government support measures come to an end, and the true scale of the impact of the pandemic on the labour market becomes apparent.
"Rising house prices contrast with the adverse impact of the pandemic on household earnings and, with most economic commentators believing unemployment will continue to rise, we do expect greater downward pressure on house prices in the medium term."