Despite the coronavirus pandemic stagnating the property market at the beginning of the year, pent-up demand and the government’s stamp duty holiday on properties valued below £500,000 has meant house prices are £13,897 higher than last year.
Nationwide’s Chief Economist Robert Gardner said economic growth slowed from 6.3 percent in July to 2.2 percent in August to 1.1 percent in September.
Mr Gardner added: “Rising infection rates and tighter social restrictions will have resulted in a further hit to growth in October and November.
“Labour market conditions also weakened with the unemployment rate rising to 4.8 percent in the three months to September – still low by historic standards, but up from an average of 3.8 percent in 2019.
“The extension of the furlough scheme to March 2021 will help limit job losses in the short term by enabling firms to retain more staff than they would have done otherwise.”
However, October saw property sales rise to their highest level since 2016 with mortgage approvals at their highest level since 2007.
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