Treasury measures to boost demand for property and a neglect of social housing are making a dysfunctional market worse
Having ridden out the pandemic far better than was expected, Britain’s housing market is enjoying a springtime boom. Demand for homes is surging to levels not seen for at least a decade, outstripping supply and pushing up prices. Earlier this month it was reported that the average cost of a UK home now stands at a record high of £254,606. Gazumping is rampant. A rural property with green space attached, within easy reach of a city, is the quintessential post-lockdown object of desire.
Mindful of the role of buoyant house prices in boosting consumer confidence and driving growth, Rishi Sunak is busily stoking the fires. The extension of the stamp duty holiday to the end of June concentrated minds among those with the wherewithal to relocate. A new version of help to buy, targeted at first-time buyers, was introduced this month. A government-backed mortgage guarantee scheme will be launched on Monday, protecting lenders who offer 95% mortgages on properties valued up to £600,000. This, Boris Johnson has claimed, will help turn “generation rent” into “generation buy”.
