UK house prices rose at an annual rate of 11 per cent last month, slightly up from 10.7 per cent in June, according to mortgage provider Nationwide. The increase took the average house price to £271,209, £55,000 above the level in February 2020, before the Covid-19 pandemic. “Demand continues to be supported by strong labor market conditions,” said Robert Gardner, Nationwide’s chief economist. “At the same time, limited housing inventory on the market has helped maintain upward pressure on house prices.” But the impact of inflation at a 40-year high of 9.4% and low consumer confidence was underlined by a cooling in mortgage transactions handled by Nationwide. Overall housing market transactions in the quarter to May were around 20 per cent below the increased levels brought on by the stamp duty holiday, Nationwide said. However, they were still 5 percent above pre-pandemic levels. Mortgage transactions have slowed more than other sectors, while first-time buyer mortgage completions have remained resilient. This is despite the fact that house price growth continues to outpace earnings by a wide margin, increasing the deposit required. Along with higher interest rates, these have pushed up mortgage repayments relative to incomes.