Vanessa Hale, head of residential research at Strutt & Parker comments, “The UK housing market this year has shown it is undeterred by rising fuel prices, growing inflation, and increasing interest rates. This resilience was demonstrated this week with Rightmove confirming anew record high average house price.

“The measures announced by the Chancellor today which look to address these pressures on households will give many some relief from rising costs, and act as a boost to consumer sentiment. However, with demand in the market continuing to outstrip supply, the ongoing shortage of stock will likely sustain further house price growth in the coming year, despite wider macroeconomic influences.

“That said, market activity and price growth could cool this year if these pressures continue to deepen. If the price of energy, materials and borrowing costs continue to rise, along with inflation, demand could soften and this will impact the pace of growth currently forecasted. As ever, the wallets of those yet to get onto the housing ladder will likely be hardest hit, driving increased pressure on the private rental sector.”

To read the Government’s full Spring Statement click here.