In the first quarter, Nationwide said UK house prices grew by 1.5% compared to the same period a year ago, and by 0.7% on a seasonally adjusted basis versus the previous three months

UK house prices rose 0.9% month-on-month in March, putting the average cost of a home at £277,186, according to the latest data from Nationwide.

That was up from an average price of £273,176 in February. Nationwide’s latest house price index, released on Tuesday, showed that the cost of on an annual basis house prices increased by 2.2% in March, picking up from 1% growth year-on-year in February.

In the first quarter, Nationwide said UK house prices grew by 1.5% compared to the same period a year ago, and by 0.7% on a seasonally adjusted basis versus the previous three months.

Robert Gardner, chief economist at Nationwide, said: The pickup in house price growth suggests that the market had regained momentum after the slowdown recorded around the turn of the year.

However, the sharp rise in global energy prices in response to developments in the Middle East represents a significant shock to the global economy, clouding the outlook, he said.

In the near term, UK economic growth is likely to be slower and inflation higher than previously expected, although ultimately the impact will depend on the duration of the shock as well as the policy response, he said.

Gardner added that the outlook for interest rates is particularly uncertain particularly uncertain and dependent on whether the demand or supply side of the economy is more adversely affected.

He said that the market expectations for the future path of interest rates have shifted dramatically.

Towards the end of March, three interest rate increases were priced in over the next twelve months, compared to two rate cuts being anticipated before the strikes on Iran, he said. This shift has resulted in a sharp rise in longer-term interest rates (swap rates) that underpin fixed-rate mortgage pricing, he added.

The Bank of England (BoE) held interest rates at 3.75% in March and warned that inflation will be higher in the near term due to the shock from higher energy prices.