London saw the weakest first quarter house price growth in UK, says Nationwide report

Nationwide said UK annual house price growth in the first quarter was similar to the fourth quarter, although there was a mixed picture across the regions.

England was the weakest performing home nation in the three months to March 2021, with annual house price growth of 6.4% - a slight slowing compared with 6.9% in the prior three months.

Growth last year was supported by a mixture of pent up demand as scores of people reassessed housing needs during lockdowns, as well as government measures to boost buying, such as the stamp duty holiday.

Government support came after a initial hit for the industry at the start of the first lockdown, when people were urged to avoid moving where possible, and physical viewings temporarily stopped.

The Budget earlier this month delivered the housing market a further boost by extending the stamp duty holiday deadline. Meanwhile a mortgage guarantee scheme to help buyers with a 5% deposit will also be launched.

Nationwide’s Gardner said:   “Recent signs of economic resilience and the stimulus measures announced in the Budget, including the extension of the furlough scheme and the stamp duty holiday, as well as the introduction of a mortgage guarantee scheme, suggest that housing market activity is likely to remain buoyant over the next six months.”

But he added: “The longer-term outlook remains highly uncertain. It may be that the recovery continues to gather momentum and that shifts in housing demand resulting from the pandemic continue to lift the market. However, if the labour market weakens towards the end of the year as policy support is withdrawn, as most analysts expect, then activity is likely to slow nearer the end of 2021, perhaps sharply.”