London Daily

Focus on the big picture.
Monday, Sep 21, 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
British Museum Faces Questions Over Peter Thiel’s Private Bayeux Tapestry Viewing
Earl Spencer Memoir Excerpts Renew Public Debate Over Diana’s Death
Liberal Democrats Gather in Brighton for Autumn Conference
Mothercare Shares Plunge as Middle East Store Closures Threaten Long-Term Solvency
Kent Police Treat Folkestone Hotel Fire as Suspicious
Caribbean Governments Advance Reparations Campaign Seeking Engagement With Britain
Scottish Labour Leader Backs Rosebank and Jackdaw North Sea Projects
FCA Urges Young Adults to Trace £1.5 Billion in Unclaimed Child Trust Funds
UK Competition Regulator Opens Inquiry Into McCormick-Unilever Foods Deal
Public Inquiry Into Tees, Esk and Wear Valleys Mental Health Failings Set to Begin
Nigel Farage Looks to US Immigration Enforcement Model for UK Border Policy
Chiltern Railways Moves Into Public Ownership
Security Review Raises Concerns Over Sensitive UK Police Data Stored on Microsoft Cloud
Burnham Government Warns of Difficult Autumn Budget as Fiscal Headroom Narrows
Bank of England Holds Rates at 3.75% as Inflation Rises to 3.1%
Ed Sheeran Tour Faces Backlash After Macklemore Is Removed Over Pro-Palestinian Remarks
Vandalism of Traffic Cameras Intensifies Across Parts of England
Nearly 300 Evacuated as Fire Hits Grand Burstin Hotel in Folkestone
King Charles Warns AI Executives About Risks From Uncontrolled Technology
Church of England Apologises for Role in Historical Forced Adoption Practices
UK Debate Over Online Speech Intensifies After Arrest Figures Draw Scrutiny
Oxfordshire Village Holds Symbolic Independence Vote Over Asylum Accommodation Plan
Nigel Farage and Richard Tice Sue National Crime Agency Over Alleged Banking Data Leaks
Apple Introduces Stricter Age Checks for UK Accounts
BBC Cash Reserves Fall 66% to £125 Million as Broadcaster Restructures
McLaren Announces £500 Million UK Investment and Plans 1,000 Jobs
Green Party Wins Historic Gorton and Denton By-Election as Labour Falls to Third
Burnham Government Prepares October Budget Under Growing Fiscal Pressure
UK Energy Suppliers Pull Fixed-Price Deals as Wholesale Markets Turn More Volatile
Bank of England Holds Rates at 3.75% as Middle East Energy Shock Raises Inflation Risks
Addison Lee Founder Loses £20 Million UK Tax Tribunal Case
BrewDog Creditors Face Losses on About £190 Million of Debt
Harrods Seeks to Recover Abuse Compensation Costs From Mohamed Al Fayed’s Estate
Ed Davey Targets Reform UK as Liberal Democrat Conference Opens
Great Britain Retail Sales Rise 0.5% in August
NHS England Approves Life-Extending Treatment for Incurable Breast Cancer
Proposals to Limit NHS ADHD Diagnoses Draw Criticism From Patient Groups
Resolution Foundation Warns of Housing Cost Crunch for Low-Income UK Families
BBC Cash Reserves Fall to Decade Low as Annual Deficit Reaches £121 Million
Millisecond Software Error Triggered Major UK Air Traffic Control Disruption
Twenty Women Underwent Unnecessary Mastectomies During NHS Cancer Care
Sensitive UK Police Data Found Vulnerable to Access by Foreign Actors
British Steel Faces Renewed Pressure for a Long-Term Financial Plan
MPs Urge Government to End Thames Water Restructuring Talks With U.S. Hedge Funds
Andy Burnham Warns of Difficult UK Budget Choices as Inflation Returns to 3.1%
England Tightens School Food Standards With Restrictions on Deep-Fried and High-Sugar Foods
Oxfordshire Village Votes Symbolically to Leave UK Over Proposed Asylum Centre
Michael Marra Elected Leader of Scottish Labour
BBC Cash Reserves Fall Sharply as Financial Pressures Mount
George Osborne Calls for UK to Rejoin EU Customs Union
×