Annual UK house prices jumped 10.9% in May, with buyers in a ‘race for space’

The mortgage lender said the ‘race for space’ continues, and said of those moving or considering a move, around a third were looking to move to a different area, while nearly 30% were doing so to access a garden or outdoor space more easily.

Nationwide’s Gardner added that the market is also helped by low borrowing costs and improving credit availability.

He said: “Further ahead, the outlook for the market is far more uncertain. If unemployment rises sharply towards the end of the year as most analysts expect, there is scope for activity to slow, perhaps sharply, though even this could potentially be offset by ongoing shifts in housing preferences, if current trends are maintained.”

Anthony Codling at property analysis firm Twindig said: “Nationwide believes that the stamp duty holiday, working from home and Covid-19 has led to a 'race for space' as households seek bigger homes and more outside space in less urban areas. However, this space race will leave many aspiring buyers left behind and grounded as house prices become too high in the sky to reach.”