UK house price boom will collapse once buyers lose their jobs

Bars are closing. Restaurants are seeing bookings cancelled. Retailers are worried about the impact of tightened Covid-19 restrictions on their businesses in the run-up to the crucial period. Everywhere there are signs of an economy rapidly losing momentum after its summer growth spurt.

Everywhere apart from the housing market. There demand is booming, with the Bank of England reporting that mortgage approvals in September were the highest since 2007, the year the last crisis started.

Stronger demand for property is feeding through into higher prices. The Nationwide building society said in its monthly report that prices rose at an annual rate of 5.8% in October, the highest house-price inflation in six years.

By Larry Elliott, please read the full article on The Guardian.

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