- Demand for flats and city centre properties is starting to return
- However, London sales price growth is likely to continue to lag
A return in the type of heady house price inflation not seen since the months immediately prior to the great financial crash was always going to spark fears of a market bubble. UK average sales prices leaped 10.2 per cent in March, according to the Office for National Statistics latest house price index, the highest rate since August 2007.
Beneath the startling headline growth rate, post-pandemic trends have become more entrenched. The regions outside London stole a greater lead on the capital, while the rate of price growth enjoyed by detached homes continued to race ahead of flats amid a search for more space and increased budgets imbued by the stamp duty break. More broadly, inner city locations have become less desirable as commute times have been pushed down the priority list by homebuyers amid the pandemic.