House prices are rising so fast in a pandemic

UK house prices are soaring. Official figures show they have been increasing at their fastest rate for more than a decade despite the country being gripped by a pandemic.

The UK’s biggest building society, the Nationwide, has described the UK housing market as “buoyant”.

Potential first-time buyers and movers may have more of a sinking feeling, as some watch the likelihood of owning move further out of reach.

House prices in the UK have generally been going up since the financial crisis. The latest official figures, for March, show that trend speeding up.

Property values were 10.2% higher than a year earlier – the fastest annual rate of growth for 14 years.

 

This map from property portal Zoopla shows that, unlike recent booms, the biggest price rises have been outside of London and the South East of England.

That would make mortgage borrowing more expensive, putting some new property buyers who borrowed to their limit in financial danger.

An income shock, such as the loss of their job, could make that situation a perilous one.

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