Analysis: pent-up demand, stamp duty holiday, low borrowing costs and overseas investors added fuel
London was in lockdown. Its economy – more dependent than most regions on hospitality and tourism – suffered as a result of the restrictions imposed in November by the government to curb the spread of Covid-19. Yet the price of the average house in the capital was almost 10% higher than a year earlier and topped the £500,000 level for the first time.
One London borough – Kensington and Chelsea – had house price inflation of 28.6%, the sort of increase normally associated with a booming economy rather than one that contracted by 2.6% on the month.