UK house prices have risen by a staggering 20.4% since the pandemic started, according to Halifax.

The rise is equal to an average property price increase of £48,620, said the lender, up from £237,895 to £286,515.

The onset of the pandemic and first lockdown transformed the property market almost overnight, according to Halifax, as activity plunged when the market effectively shut down.

As restrictions eased, there was a subsequent surge of pent-up demand, boosted by the Stamp Duty holiday.

How Covid-19 changed the market

Wales saw the strongest house price growth in percentage terms of any UK nation or region over the last three years, rising by 29.3% from £168,101 to £217,328 (£49,227).

The South East of England saw the biggest jump in cash terms, up by £69,224 (21.3%) from £325,448 to £394,672.

The average price for bigger homes has grown at nearly twice the rate than for smaller properties, partly down to the race for space, as buyers sought bigger properties, often in more rural areas.

The average price of a detached home rose by 25.9% or £93,345 between the start of 2020 and the end of 2022. And five regions – Eastern England, Greater London, South East, South West and West Midlands – saw the average price of a detached property rise by more than £100,000.

Kim Kinnaird, mortgages director at Halifax, said: “The pandemic transformed the shape of the UK property market, and while some of those effects have faded over time, it’s important we don’t lose sight of the huge step change seen in average house prices.

“Heightened demand created a much higher entry point for bigger properties right across the country, and that impact is still being felt today by both buyers and sellers, despite the market starting to slow overall.

“Taking detached houses as an example, average prices remain some 25% higher than at the start of 2020. Even if those values were to fall by 10%, they would still be around £50,000 more expensive than before the pandemic.”