London Daily

Focus on the big picture.
Monday, Mar 09, 2026

Housing Market Frenzy - It’s Not Just Britain, You Know…

Housing Market Frenzy - It’s Not Just Britain, You Know…

EAT's Graham Norwood explores house price booms across the world and insists it's not a uniquely British phenomenon.

Right now it seems that another day means another house price record, an all-time high for transactions, and a conveyancing log-jam the like of which we haven’t seen before.

Mayhem, frenzy, boom - we all know the superlatives, and I’ve written many of them.

Yet our housing market’s amazing performance isn’t exceptional and it isn’t something uniquely British; in fact, the same unexpected surge in residential buying and selling has gone on across much of the western world for the duration of the pandemic.

It seems there’s nothing like a virus to spur on a housing market.

Across the 37 countries in the Organisation for Economic Cooperation and Development (OECD) the average national house price rise between late 2019 and late 2020 was 6.7 per cent, the fastest rate for two decades.

A Reuters poll of economists just last month showed significant increases in their forecasts for house prices in 2021 - the US, Canada, Australia and UAE joined the UK at the top of those revised predictions.

According to Knight Frank, which has conducted its own extensive international research, Turkey has seen an eye-watering 32 per cent annual hike in house prices in the year to the end of March. The agency adds that New Zealand is on 22 per cent and the US, which prices are up 13.5 per cent, is witnessing its biggest property inflation rate for 16 years.

And all of these other countries are seeing annual house price inflation at 10 per cent or more: Luxembourg, Slovakia, Sweden, Austria, Netherlands, Russia, Norway, Canada, and Peru.

Indeed, out of 56 countries looked at by Knight Frank, in the year to the end of March 2021 only Malaysia, Morocco, India and - unexpectedly - Spain saw price falls, but in no case was this worse than down 1.8 per cent in 12 months.

The big question is, why is this happening?

Firstly, those all-important injections - I mean fiscal and monetary stimulus injections, not just vaccines - have led many economies to shift the pain until this autumn or beyond.

Recovery looks to be rapid but until artificial safety nets like furlough are removed from the market, we won’t know the damage caused by Coronavirus to national economies. Between now and then unemployment, inflation and other economic evils are suppressed.

Secondly ultra-low interest rates exist almost worldwide - not only is the British base rate a mere 0.1 per cent, but at different times recently Japan, Sweden, Switzerland and the 19 Eurozone countries have taken interest rates into negative territory.

Again, this is unlikely to change in the short-term, as economies brace themselves for possible Coronavirus repercussions in the years ahead. So, borrowing to buy a home remains cheap by historical standards in the UK and much of the west.

Thirdly there’s a vaccine-fuelled feel-good factor. The depression of early 2021, when the vaccine roll-out looked some way off and the virus returned with more viciousness than expected, has now been replaced in many countries by much greater optimism.

Israel and Canada have a higher percentage of single-jabbed population than the UK; the US, parts of the Middle East and Germany, Italy and France are now not far behind this country. So optimism is rife, which typically translates into housing market activity.

In Britain, and in most western countries, there is a fourth factor: a relative shortage of housing compared with demand. This is not a shortage of stock for sale now, but an absolute and ongoing shortage of properties available for the number of households.

How long all this will last is, of course, unknown: 18 months ago there was widespread concern that prices would tumble and demand slump, so it is clear that forecasts are at best difficult and at worst foolhardy.

However, at least we know one thing: even in a pandemic the responses worldwide have been similar, both by governments in the form of economic parachutes, and by individuals in the form of wanting to change lifestyles and seek more space.

Britain isn’t unique - and nor is the behaviour of its current and future home owners.

Newsletter

Related Articles

0:00
0:00
Close
Trump Declines UK Offer to Deploy Aircraft Carriers to Middle East Amid Iran Conflict
Prince Harry and Meghan Markle to Return to Australia After Seven Years for Philanthropic and Business Engagements
UK Government Signals Independence From Washington as Cooper Says Britain Does Not Agree With Trump on Every Issue
UK Experts Warn AI Chatbots Are Fueling Surge in Claims of Organised ‘Satanic’ Ritual Abuse
UK Political Parties Divided Over Strategy as Iran Conflict Reshapes Foreign Policy Debate
Britain Discloses Secret Military Repair Hubs Operating Inside Ukraine
Trump Says US No Longer Needs UK Carrier Support After Delayed Offer Amid Iran Conflict
Why Britain Has Become Involved in the US-Israel Military Campaign Against Iran
UK Gas Storage Falls to Under Two Days as Iran Conflict Jolts Global Energy Markets
UK Warned to Brace for Economic Shock as Iran War Drives Global Energy Price Surge
Starmer and Trump Hold First Call After Public Dispute Over Iran Conflict
UK Dentists Returned £1.3 Billion to Government as Shift Toward Private Care Accelerates
Expert Warns UK Must Build Emergency Food Stockpiles to Prepare for Climate Shocks or War
UK Plans Charter Flight to Evacuate British Nationals from Gulf as Regional Conflict Disrupts Air Travel
Families of Zimbabwe’s Liberation Fighters Call on Britain to Help Locate Skulls Taken During Colonial War
Iran’s Ambassador Warns Britain to ‘Be Very Careful’ Over Deeper Role in Expanding Middle East War
UK Military Leadership Defends Britain’s Defensive Role in Expanding Middle East Conflict
Four U.S. Strategic Bombers Arrive in Britain as Iran War Intensifies
Soham Murderer Ian Huntley Dies After Violent Attack in High-Security Prison
UK Lawmakers and Experts Condemn Scale of Overseas Human Remains Held in British Museums
Royal Navy Aircraft Carrier HMS Prince of Wales Placed on Standby for Potential Deployment
United Kingdom Confirms U.S. Military Using British Bases for Operations Targeting Iranian Missile Sites
Starmer Defends UK Role in Iran Conflict After Renewed Criticism from President Trump
Blue Owl Reveals £36 Million Exposure After Collapse of UK Lender Serving Wealthy Clients
UK Asylum Reform Plan Triggers Fierce Debate Over Border Control and Humanitarian Impact
US Stealth Bombers Head to UK Base as Trump Issues Stark Warning to Iran
UK Deputy Prime Minister Says Legal Case Could Exist for British Strikes on Iranian Missile Sites
Investigators Link Mysterious Parcel Fires Across Europe to Russian Intelligence Operation
Debate Intensifies Over Britain’s Legal Justification for US Military Operations Launched From UK Bases
Britain Faces Heightened Energy Price Risks as Iran-Linked Tensions Threaten Global Oil and Gas Supplies
British Counter-Terror Police Arrest Four Suspected of Spying on Jewish Community for Iran
Axel Springer Agrees $770 Million Deal to Acquire Britain’s Daily Telegraph
Iceland Supermarket Drops Trademark Challenge Against Icelandic Government in Long-Running Naming Dispute
UK Defence Secretary Visits Cyprus Following Scrutiny of Britain’s Response to Drone Attacks
Questions Grow Over Britain’s Military Readiness as Response to Iran Conflict Draws Scrutiny
UK Offers Failed Asylum Seeker Families Up to Forty Thousand Pounds to Leave Voluntarily
Saharan Dust Could Bring ‘Blood Rain’ to Parts of the UK as Weather Systems Shift
UK Deploys Additional Typhoon Fighter Jets to Qatar and Helicopters to Cyprus Amid Rising Middle East Tensions
Experts Urge Britain to Accelerate Renewable Energy Push as Global Conflicts Drive Up Costs
British Public Shows Strong Reluctance to Join Wider War in Iran
First UK Evacuation Flight Departs Middle East After Lengthy Delay
United Kingdom Imposes New Visa Requirements on Travelers from St. Lucia and Nicaragua
Iran Conflict Strains U.S.–U.K. Alliance as Trump and Starmer Clash Over Military Strategy
UK Interest Rates Could Rise Above Four Percent Again if Energy Shock Continues, Think Tank Warns
Starmer Defends Britain’s Iran Strategy as Badenoch Urges Stronger Military Support
Labour MP Says She Saw No Sign Husband Broke Law After Arrest in China Espionage Investigation
UK Jobless Rate Overtakes Italy’s for First Time in Years as Labour Market Weakens
United Kingdom Suspends Student Visas for Four Countries in Unprecedented Immigration Move
Campaigners Warn UK Student Visa Ban Could Push Migrants Toward Dangerous Channel Crossings
First U.K. Charter Flight for Stranded Nationals Set to Depart Oman Amid Middle East Crisis
×