Three reasons why the property market has soared – and why it might not last

The economic outlook is bleak yet house prices hit a new all-time high in August – and the momentum is only set to continue.

Mortgage approvals have surged, and the number of sales agreed last month was 91pc up on August 2019, according to analysis by Savills estate agents. As these deals filter into completed sales, house price growth should stay strong in the coming months.

So how has coronavirus created a property market boom in spite of the deepest recession on record, and can it continue?

Pent-up demand

The fundamentals of the property market before the pandemic hit were strong. New certainty in the wake of the Conservatives’ decisive general election victory kick-started Britain’s sluggish housing market at the end of 2019.

By March, the market was riding what estate agents were hailing as the “Boris Bounce”, and prices were up 3pc year-on-year in March, according to Nationwide

By Melissa Lawford, please read the full article on The Telegraph.

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