House prices rose by almost £3,000 last month, according to latest figures from Nationwide Building Society.

The average home was selling for £273,427 in May, according to Britain's biggest mutual, up from £270,752 in April.

It means property values are 3.5 per cent higher than a year ago and are closing in on the August 2022 peak, when they hit £273,751.

The monthly jump in prices suggests the stamp duty changes at the start of April has had a minimal impact on home buyers.

Robert Gardner, chief economist at Nationwide said: 'Official data confirmed that there was a significant jump in residential property transactions in March, with buyers bringing forward their purchases to avoid additional stamp duty costs. 

'Owner occupier house purchase completions were around twice as high as usual and the highest since June 2021 - which was also impacted by stamp duty changes.'

He added: 'Nevertheless, mortgage approvals data suggests that market activity appears to be holding up well following the end of the stamp duty holiday. 

'Despite wider economic uncertainties in the global economy, underlying conditions for potential home buyers in the UK remain supportive.

'Unemployment remains low, earnings are rising at a healthy pace - even after accounting for inflation, household balance sheets are strong and borrowing costs are likely to moderate a little if bank rate is lowered further.'

Tom Bill, head of UK residential research at Knight Frank said while there are 'tentative signs of momentum' in the housing market a dramatic rebound in prices doesn’t feel likely. 

'Concerns around inflation and the government’s financial headroom mean mortgage rates don’t feel poised to drop meaningfully,' said Bill.

'Buyers also have a lot of properties to choose from this spring, which we expect to keep downwards pressure on prices in the short term.'

There are also huge regional variations that are impacting house prices, according to Jonathan Hopper, chief executive of buying agency Garrington Property Finders.

'In parts of London and much of southern England, the supply of homes for sale is now far outstripping demand. 

'This is especially true in more expensive, and often highly desirable, areas where the trickle of supply has turned into a flood.

'In these areas, buyers find themselves blessed with plenty of choice and the leverage to negotiate on price. This is keeping prices flat or even nudging them down.

'At the other end of the scale, demand is often exceeding supply in areas seen as representing strong value - and this is driving prices up rapidly in much of northern England.'