House prices staged a strong recovery in the third quarter, as lockdown restrictions eased. Prices rose 3.3% in the three months to September, according to the Halifax Property Index, the strongest increase recorded since the end of 2006. On an annual basis prices were 5.5% higher, the sharpest rate of inflation since the final quarter of 2016. The housing market has been buoyed by government interventions such as the stamp duty holiday introduced over the summer. Paul Smith, economics director at IHS, suggested the resurgence in prices was also due to “strong demand driven by a desire for more space – either as a reaction of the lockdown or the structural economic effects of increasing home working”.
City AM (12/10/2020)