UK house prices increased 7.1% compared to the same period a year earlier.
Figures from Nationwide saw a rise in house prices by £15,916 to £238,831. This is compared to a 2.1% rise in March.
According to Lucy Pendleton, from independent estate agents James Pendleton, the market is reaching a boiling point.
“Silly season might be just around the corner. That’s when a seller’s market becomes entrenched against a backdrop of very high demand and you start to see open houses for properties that are nothing special and a return of gazumping,” said Pendleton.
Nationwide expects house prices to continue to grow over the next six months amid the stamp duty holiday.
Nationwide’s chief economist, Robert Gardner, said: “Our research suggests that while the stamp duty holiday is impacting the timing of housing transactions, for most people it is not the key motivating factor prompting them to move in the first place.”
“If unemployment rises sharply towards the end of the year as most analysts expect, there is scope for activity to slow, perhaps sharply,” he added.
The stamp duty holiday is set to finish at the end of June, when there will be a staggered return to normal rates.
