London Daily

Focus on the big picture.
Saturday, Aug 01, 2026

UK enjoys property sales boom amid Covid-19 pandemic

UK enjoys property sales boom amid Covid-19 pandemic

Britain’s real estate market defies predictions of a house price crash despite coronavirus crisis
Hard-to-sell homes are being snapped up by the hundred as Britain’s booming property market maintains a year-long breakneck sales record.

In areas of high demand, even the most knocked-about and idiosyncratic houses are spending just days on the market once buyers, desperate to grab something, see that predictions of a house price crash are proving off the mark.

“Homes that look like the last turkey in the Christmas shop window are flying off the shelves at the moment,” said property agent Henry Pryor.

While the property merry-go-round screeched to a temporary halt during the first lockdown early last year, the pause did not last. With sales barely slowing over the summer, the data is clear: along with technology, real estate has emerged as one of the pandemic’s boom sectors.

Andrew Wishart, property economist at consultants Capital Economics, said: “With the amount of secondhand stock on the market currently extremely limited, house prices could continue to surprise on the upside.”

There is always the possibility that places like Cornwall and towns along the south coast are in a bubble and prices are about to burst, said Pryor, “but the banks and local agents seem convinced that the momentum will keep prices on the up for a long time yet”.

Mortgage lender Nationwide said its measure of annual house price increases chalked up its second-biggest monthly rise in 15 years in August, putting to bed fears that the end of the government’s stamp duty tax break, which prompted a fall in the number of homes changing hands during July, would bring the market to a juddering halt.

Prices were up 11% on a year ago, said Nationwide, and remain about 13% above pre-pandemic levels, according to official data.

Adding to the feverish activity, which has seen some English agents adopt the well-worn Scottish system of sealed bids amid claims of gazumping, new home builders have battled steel and timber shortages and an exodus of staff following Brexit to construct new homes. Many have seen their profits soar.

Britain’s biggest homebuilder Barratt Developments reported a near doubling of profits over the last year to £812m on Thursday, and said viewing requests for new homes over the next six months were “strong”.

While homeowners may cheer rising prices, the charity Housing Justice said the boom encouraged private landlords to sell up and leave tenants looking for another place to live, and would only add to the longstanding problems facing homeless people and those in the private rented sector.

Wishart said the end of the furlough scheme on 30 September, which is expected to push unemployment higher, posed only a small risk to rising prices.

“The end of the repossessions ban and closure of a mortgage payment holiday scheme had “failed to trigger an increase in homeowner distress,” he said, adding that the only trap-door for prices was an interest rate rise by the Bank of England, which at the moment seems far in the distance.

In May 2020, it was a very different story. The first lockdown meant buyers could no longer view properties except online, sellers took their homes off the market and sales collapsed.

Two months later Rishi Sunak responded to calls for government support by extending the help-to-buy scheme for first-time buyers and cutting stamp duty on homes worth less than £500,000.

Figures for August 2020 revealed a spectacular turnaround. Mortgage approvals jumped from 66,300 in July to 84,700, according to Bank of England figures, their highest level since October 2007.

Recent analysis of the government’s actions by the Resolution Foundation thinktank argued that the £4bn stamp duty subsidy was wasted on sparking a market to life that had already begun to recover and was always going to enjoy stellar growth.

It said ultra low interest rates, the demand for more spacious properties during the pandemic and the pent up savings of those kept in work by the furlough scheme was enough to spur buying activity without extra incentives from the Treasury.

“It’s true that when the first lockdown was eased, most property analysts were gloomy about the prospects for the market, thinking people would hunker down,” said Pryor. “But by June 2020 it was clear that the British obsession with location, location, location was alive and kicking, it was just they now wanted a different location.”
Newsletter

Related Articles

0:00
0:00
Close
Finland Deploys Commercial-Scale Thermal Batteries Using Crushed Rock to Store Renewable Grid Energy
Valued at $109 Million: F-35B Fighter Jet Crashes in Southern California
Sainsbury Agrees to Sell Argos in £120 Million Deal to Private Consortium
High Court Clears Way for Construction of Chinese Embassy at Royal Mint Court
UK Fuel Prices Climb to Multi-Month Highs as Strait of Hormuz Tensions Disrupt Oil Supplies
Severe Summer Drought and Record Heat Put UK Harvests at Risk
Prime Minister Andy Burnham Faces Labour Backbench Opposition Over Potential Support for New North Sea Oil and Gas Drilling
Bank of England Warns Inflation Will Stay Above 3% as Middle East Energy Shock Prolongs Cost-of-Living Pressures
Andy Burnham has Announces Plans to Redistribute Income Tax Revenue to English Mayors
Early-Release Scheme Faces Fresh Scrutiny as Reoffending and Prison Recalls Rise
Police Phone Checks Followed Report on Murder of MI5 Agent Inside Sinn Féin
Archbishop of Canterbury Reaffirms £100 Million Reparative Justice Fund During Ghana Visit
Charities Allege French Police Used Tear Gas Against Channel Migrants
Norwegian Teenager Convicted Over Iran-Linked Murder Plot in Britain
Christian Organisations File Charity Complaints Against Amnesty International UK
Ofgem Tightens Grid Connection Rules for New Data Centres
FTSE 100 Reaches Record High Despite Global Technology Sell-Off
Millions of UK Households Urged to Check Eligibility for Winter Energy Discount
Labour Restores Parliamentary Whips to Diane Abbott and Joani Reid
UK Supreme Court to Hear Challenge Over Palestine Action Ban
UK Commits More Than £8.4 Billion to Dreadnought Nuclear Submarine Programme
England Declares Severe Drought as Wildfire Burns Near Sizewell Nuclear Site
Bank of England Holds Interest Rates at 3.75% as Middle East Tensions Fuel Inflation Risks
Drought Status Extended Across All of Wales as Heat and Dry Weather Deepen Environmental Strain
Record-Low Danube Exposes Probable Mammoth Remains in Bulgaria
UK Business Confidence Climbs to Four-Month High
Greater Manchester Gains Expanded Powers Under Regional Funding Reforms
UK Supreme Court to Hear Appeal Over Palestine Action Terror Ban
Shell's Quarterly Profit Doubles to Nearly $10 Billion on Higher Energy Prices
UK Government Removes VAT From Household Electricity Bills
Exceptional Drought Grips Half of England as Wildfire Threatens Sizewell
Bank of England Holds Interest Rates at 3.75% as Inflation Risks Persist
US Says It Has Carried Out Heavy Strikes on Iran After Attempted Attacks on Its Forces
The chief executive of the popular gaming company laid off many employees and his pay rose to 38 million dollars
UK Employment Holds Steady as Wage Growth Remains Moderate
England to Introduce Artificial Intelligence into Secondary School Curriculum
Wales Launches £1.2 Billion Industrial Regeneration Programme
High Court Upholds UK Digital Surveillance Framework
Northern Ireland Reaches Budget Agreement on Infrastructure and Public Sector Pay
Home Office Expands Digital Border Checks Nationwide
UK Approves Major North Sea Wind and Carbon Capture Project
The World's Most Terrifying Smartphone: Recording, Documenting, and Reporting to the Regime
Scotland Approves Major Renewable Energy Expansion
UK and United States Sign AI and Semiconductor Cooperation Pact
UK Treasury Tightens Fiscal Controls After Gilt Market Volatility
Bank of England Holds Interest Rates at 4.5%
UK Unveils £10 Billion NHS Funding Overhaul and Workforce Reform
The AI User Nightmare: Private Claude Conversations Leaked to the Internet
UK: Former Football Association Leaders Call for World Cup Boycott Over FIFA Privatization Plan
Forbidden Love: China severs millions from their virtual partners
×