The covid housing crisis provides an ideal opportunity for reform

For a moment, it seemed as if the UK real estate sector was experiencing a boom in the weeks after the covid lockdown ended. Despite the steepest drop in GDP in the country’s history, the increased demand brought about by months of inactivity in the sector led to a rise in house prices.

Now, however, prices are predicted to fall in the coming months. Government measures to stimulate the market have come to an end and the young people and first-time buyers who might have taken advantage of them are instead more disadvantaged than ever.

The brief upswing in the UK housing market initially surprised many analysts. Although the country’s GDP is down by 21% quarterly – the worst out of the G7 countries and the deepest UK slump on record – house prices rose steadily from July. Following 1.8% growth that month, average prices rose again by two per cent in August – the highest monthly rise in over 15 years and enough to drive the average UK house price to a record high of just under £225,000.

By Gary Buswell, please read the full article on politics.co.uk.

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