(Bloomberg) — U.K. house prices rose for a ninth consecutive month in April as the housing market continued to defy an escalating cost of living crisis. 

According to Building Society, the 0.3% increase marked the longest win streak since 2016. It also lifted the average home price to record 267620 pounds (335,000), The value of homes was 12.1% more than one year ago. 

A shortage of housing for sale has driven the surge. There is also a pandemic-driven desire for larger homes away from major cities. Nationwide however warned that rising energy costs and high inflation will put pressure on consumer spending, which could slow down momentum.

“We continue to expect the housing market to slow in the quarters ahead,” Robert Gardner, chief economist at Nationwide, said in a statement on Friday. “The squeeze on household incomes is set to intensify.”

In April, the growth was less than the 0.8% expected increase by economists. Also, the annual pace for house price inflation fell from 14.3% to April. 

Another headwind facing the market are the stretched affordability of first time buyers, and further interest rate hikes from the Bank of England. This is all in an effort to reduce inflation. 

The March BOE survey revealed that banks plan to drastically reduce their mortgage lending, in fear of defaulting by borrowers.

“It’s surprising that conditions have remained so buoyant, given mounting pressure on household budgets which has severely dented consumer confidence,” Gardner said. “Consumers’ expectations of their own personal finances over the next 12 months has dropped to levels last seen during the depths of the global financial crisis more than a decade ago.” 

The average home’s value has increased by almost 52,000 pounds in the wake of the pandemic in 2020. This is a 22% increase in price. Nationwide also pointed out that the market is supported by the savings made during the pandemic as well as a strong labor market.

Rural areas like Wales and Southwest England have led the increase, with London following closely behind.