UK construction growth hits three-month low; eurozone inflation hits historic high of 5% – business live | Business

“The housing market defied expectations in 2021, with quarterly growth reaching 3.5% in December, a level not seen since November 2006. In 2021, we saw median home price reach new highs on eight occasions, although The UK is under lockdown for most of the first six months of the year.

The lack of spending opportunities given to people while there were restrictions helped boost the cash reserves of families. This factor, combined with the Stamp Duty holiday and the race for space as a result of homework, should encourage buyers to make home purchases that may have been planned for this year. The expansion of government job and income support plans will support the labor market and may give some families the confidence to initiate purchases.

The lack of homes available for sale, and historically low mortgage rates, have also helped push annual home price inflation to 9.8%, its highest level since July 2007.

“Looking ahead, the prospect of higher interest rates this year to counteract higher inflation, and increased pressures on household budgets, suggests that home price growth will slow significantly. We expect home prices to maintain their current strong levels but this growth compared to the past two years will be At a slower pace. However, there are many variables that could drive home prices either way, depending on how the pandemic continues to affect the economic environment.”