London Daily

Focus on the big picture.
Monday, Apr 06, 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
UK Considers Deploying Aircraft Carrier for US Independence Day Celebrations Amid Renewed Transatlantic Focus
United Kingdom Moves to Attract AI Firm Anthropic Amid Tensions with US Defense Officials
RAF Intercepts Iranian Drones in Middle East to Defend Allied Security Interests
Labour Signals Shift on Foie Gras and Fur Restrictions to Advance EU Trade Talks
Seven Arrested Near RAF Base as UK Authorities Respond to Protest Activity
Economic Pressures Mount as Analysts Warn UK Growth Is Being Constrained by Policy Burdens
UK Green Party’s Push for Church-State Separation Sparks Debate Over National Identity
Strategic Island Emerges as Growing Challenge for United States and United Kingdom Defense Planning
Pepsi Pulls Sponsorship from UK Festival Following Backlash Linked to Kanye West
Signs Emerge of Declining Enthusiasm for Social Media in the United Kingdom
Security Alert Raised Ahead of Meghan Markle’s Planned Visit to Australia
UK Food Halls Defy Hospitality Slowdown, Emerging as Bright Spot in Challenging Market
UK Sets Firm Conditions for Military Action, Insisting on Legal Mandate and Clear Strategy
UK Medicines Regulator Launches Probe into Peptide Clinics Over Health Claims
New North Sea Drilling Unlikely to Significantly Cut UK Gas Imports, Analysis Finds
Woman Linked to UK’s First All-Female Terror Plot Faces Deportation
Downed US Aircraft Over Iran Linked to Operations from UK Airfield
Two Men and Teen Detained in UK Following Attack on Jewish Charity Ambulance
UK Police Launch Inquiry After Firearms Left Unattended Outside Mayor’s Residence
Giuffre Family Calls on King Charles to Meet Epstein Survivors During US Visit
Amber Wind Warning Issued as Storm Dave Approaches Parts of the United Kingdom
Prince Harry and Meghan’s Australia Visit Set to Draw Heightened Global Attention
UK Considers Entry Fees for Overseas Visitors at Major Museums Ahead of 2026 Travel Season
UK Prime Minister and Kuwait Crown Prince Coordinate Security Response After Regional Escalation
Calls Grow to Expand Fully Paid Maternity Leave for UK Teachers Amid Workforce Pressures
UK Secures Tariff-Free Access to US Market in Landmark Pharmaceuticals Agreement
Trump Projects Strength in Critique of UK Leadership and Naval Readiness
UK FinTech Setback as VibePay and Smartlayer Cease Operations Amid Funding Pressures
UK Leads Global Coalition of Over Forty Nations to Address Strait of Hormuz Crisis
UK Firms Urged to Accelerate Preparation as New Sustainability Reporting Rules Take Shape
UK Moves Rapid Sentry Air Defence System to Kuwait After Drone Strike Escalation
Transatlantic Relations Tested as UK Seeks Balance While Trump Reshapes Strategic Approach
Trump’s Strategic Pressure on UK Seen as Push for Stronger Alignment and Fairer Terms
UK Focuses on Trade Finance to Secure Critical Materials for Defence and Energy Sectors
Majority of UK Businesses Hit by Middle East Conflict While Confidence Holds Firm
UK Royal Navy Faces Renewed Scrutiny as Debate Intensifies Over Capability and Readiness
Reform UK Faces Mounting Distractions as Policy Agenda Struggles to Gain Traction
Investigation Launched Into Northern Cyprus IVF Clinics After UK Families Receive Incorrect Sperm
International Meeting Issues Unified Call to Safeguard Navigation Through Strait of Hormuz
Potential Strait of Hormuz Closure Raises Concerns Over UK Food and Medicine Supply Chains
UK Leads Coalition of Over Forty Nations Urging Iran to Reopen Strait of Hormuz
UK Secures Tariff-Free Access for Medicines in Landmark US Pharma Trade Agreement
King Charles III Invited to Address Joint Session of U.S. Congress in Rare Diplomatic Honor
Debate Grows Over Whether Expanded North Sea Drilling Can Reduce UK Energy Bills
UK Faces Heightened Risk of Jet Fuel Shortages, Airline Chief Warns
UK Ends Police Investigations into Lawful Social Media Posts After Review Finds Overreach
Abramovich Moves to Establish Charity for Frozen Chelsea Sale Proceeds Amid UK Dispute
Starmer Reaffirms NATO Commitment While Responding to Trump’s Strategic Critique
UK Aid Reductions Raise Fears of Severe Human Impact Across Parts of Africa
UK Signals Renewed Push for EU Cooperation as Iran Conflict Reshapes Security Landscape
×