Despite the permanent increase in working from home, the end of pandemic restrictions has triggered a resurgence in demand in London’s rental and house purchase markets. Annual inflation in the ONS House Price Index for London has already risen from 3.8% in January to 8.1% in February, and more timely indicators point to a further acceleration in the near term. Moreover, some central boroughs such as Camden and Westminster have reversed previous dips in house prices. However, with mortgage affordability more stretched in the capital than in other regions, we expect rising mortgage rates to cool house price inflation later in the year.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services