Pandemic may have a lasting impact on housing market

The Resolution Foundation has suggested the COVID-19 pandemic will have a lasting impact on the housing market. Researchers said house prices grew nearly twice as fast in villages and small towns as they did in major cities between February 2020 and February 2022, by 22% and 12% respectively. This has led to some balancing out of regional house price gaps as cheaper homes increased in cost at a faster rate than higher-value properties. However the report warned low-paid households risk being “priced out” of homes in areas traditionally overlooked by commuters but now more in demand, amid the rise of flexible working. The authors insisted greater supply is needed to prevent “worrying” consequences. “Unless more houses are built in response to this apparent extra demand, the long-run consequence may just be to reduce housing affordability in what are currently some of the lowest-paid parts of the UK,” the report added.

The Daily Telegraph (16/06/2022)   The Independent (16/06/2022)