Due to the implementation of pandemic restrictions, house purchases declined in April and May. However, the stamp duty holiday (expiring in March) triggered a series of home buying activities and helped boost prices.
Home purchases and stock market recovery are in stark contrast to rising unemployment and the British economic downturn.
Data from the National Building Association last week showed that house prices rose by 7.3% in December.
Hina Bhudia, a partner at Knight Frank Finance, said: “The good news is that banks are increasingly eager to lend, and we have begun to see large institutions starting to buy Home lending has played a role in boosting first-time home buyers.
“The bad news is that many banks still have not resolved the backlog of applications. These backlogs were established during the lock-in period and the subsequent surge in activity in 2020. If activity increases in the first few months of the year, it may be difficult to deal with. “
The UK’s FTSE 100 index rose by nearly 2% because it continued to restore ground lost since the UK lock-in. Low-interest rates are boosting asset prices, even if the economy is hit, more people are unemployed.
In the UK, in the three months ending in October, the unemployment rate rose to 4.9% and the number of unemployed reached 1.7 million.
During this period, the layoffs reached a record high.
The government’s Office for Budgetual Responsibility, an independent forecaster, predicts that the UK economy will shrink by 11.3% by 2020, the biggest drop in 300 years. It expects the unemployment rate to reach a peak of 9.7%.