UK Housing

UK Housing Market Chart Book

Residential demand returns to London

While the UK has seen house prices boom over the past year, central London has not joined in as increased remote working led buyers to shun the capital for more space in the suburbs and further afield. But indicators of demand show that it is far too early to call time on city living, with demand now returning to the purchase and rental market despite prices remaining far higher relative to earnings than in other regions.

18 October 2021

UK Housing Market Data Response

Credit Conditions Survey (Q3 2021)

An ongoing improvement in credit availability may offset the increase in Bank Rate we expect in 2022. That offers support to our forecast that mortgage rates will remain low.

14 October 2021

UK Housing Market Data Response

RICS Residential Market Survey (Sep.)

The RICS survey suggests that the housing market has shrugged off the deterioration in sentiment about the broader economy so far. Demand stabilised at a high level in September while stock remained limited, so strong competition between buyers appears set to bid up house prices further in the near term.

14 October 2021

Our view

While the end of the stamp duty holiday in October has caused house price growth to ease, we suspect that the market will cool more gradually than most expect. Demand appears robust, supported by low mortgage rates, high household savings, and remote working. At the same time, homes for sale are in short supply. Together that suggests house prices will retain their momentum, leaving the consensus forecast that house prices will rise by 3.5% in 2022 too pessimistic. We expect house prices to rise by 5% next year.

Latest Research

UK Housing Market Data Response

Halifax House Prices (Sep.)

7 October 2021

UK Commercial Property Data Response

IHS Markit/CIPS Construction PMI (Sep.)

6 October 2021

UK Housing Market Data Response

Nationwide House Prices (Sep.)

30 September 2021

UK Housing Market Data Response

Mortgage Lending (Aug.)

29 September 2021
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