Pandemic boom drives UK house prices up by most since 2004

LONDON British house prices jumped by the most in more than 16 years this month when they were 13.4 per cent higher than in June last year and demand is expected to remain strong in the coming months, mortgage lender Nationwide said on Tuesday.

In monthly terms, house prices were 0.7 per cent higher than in May as buyers rushed to take advantage of a tax break offered by finance minister Rishi Sunak.

Economists polled by Reuters had expected prices to rise by 13.7 per cent in annual terms and by 0.7 per cent from May.

"While the strength is partly due to base effects, with June last year unusually weak due to the first lockdown, the market continues to show significant momentum," Nationwide's chief economist Robert Gardner said.