An East Lancashire town has seen the biggest house price increases in the UK since the pandemic hit, according to a new study.

With the house price boom rumoured to be nearly over, the sought after towns and cities where prices have risen by at least 25 per cent since the pandemic began have been revealed — and Burnley has taken the top spot.

According to the study by mortgage broker Responsible Life, house prices in Burnley have grown 37.1 per cent since the pandemic began in March 2020. 

The East Lancashire town beat Bath, Liverpool and other major towns and cities to the top spot.

While the figure highlights Burnley as a sought after and in demand area to buy property, it’s not good news for first time buyers hoping to get on the property ladder.

The only places in the South to make it onto the list were Bath, Lewes and Torquay.

The City of Westminster was the worst performer — with prices down 3.1 per cent over the same period.

While the UK housing market is still experiencing the strongest period of annual growth since the early 2000s, a cost of living crisis, interest rate hikes and rising borrowing costs have all led to speculation the housing market will soon cool sharply.

Nevertheless, many households will be sitting on tens of thousands of pounds of extra housing equity than they were pre-Covid.

While this has stretched affordability for first-time buyers, it has broadened choices for those in later life.

Steve Wilkie, executive chair of Responsible Life, said: “These housing markets have seen some thundering house price growth since the pandemic began.

“The cost of living crisis is hurting people of all ages and the rally has stretched affordability to breaking point for younger buyers.

“However, for retirees, it’s a different story. Many homeowners approaching retirement, or already retired, are being offered some protection by the strength of their biggest asset. 

“For those in later life lucky enough to have benefited to this degree, the boom will have provided some welcome headroom in retirement."

Annual UK house price growth accelerated slightly in July to 11 per cent, from 10.7 per cent in June, according to Nationwide Building Society, which added that it expects the market to slow in the months ahead.