UK property boom set to roll on as savings unlocked

  • 3 years   ago
UK property boom set to roll on as savings unlocked

Britain's pandemic property market boom is set to roll on as government support for the roaring market continues and those who have managed to save money during lockdowns look for more living space, a Reuters poll found.

House prices rose at the fastest annual rate in nearly 14 years in March, official data showed on Thursday, after a tax cut and a mortgage guarantee scheme for first-time buyers further stoked a sharp surge in activity. 

Prices will rise 5.0% this year, the May 11-21 poll of 21 property market experts found, a sharp increase from a February poll which predicted they would flatline. Next year and in 2023 they will rise 3.0%.

 

"The aftermath of the pandemic is likely to see sustained housing market strength into 2022, as a result of changed lifestyles, a desire for a fresh start, and tens of billions of 'accidental savings' made during the pandemic, much of which is likely to find its way into the housing market," said Mike Scott at online estate agent Yopa.

Britain has suffered the highest COVID-19 related death toll in Europe and thousands have lost their jobs.

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