The cost of the typical UK home has risen to more than £250,000 for the first time, according to the UK’s biggest mortgage lender.
The Halifax, part of Lloyds Banking Group, said house prices in October were 7.5% higher than a year ago.
Demand for bigger homes had risen, with changing priorities and working from home leading people to seek more space.
But the lender said the economic fallout from the Covid-19 crisis would put “downward pressure” on prices.
It said this would come in early 2021, and the month-on-month increase in property values had already started to slow.
Russell Galley, managing director of the Halifax, said that the extension to furlough and other government support such as the stamp duty holiday had delayed the downturn, but the future remained uncertain.
“The country’s struggle with Covid-19 is far from over,” he said, and this created “clear headwinds” for the UK housing market.
In October, prices continued to rise, continuing a 5.3% gain over the past four months, the strong