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U.K.’s Hot Housing Market Highlights Covid’s Two-Speed Economy

  • Home prices have surged, mortgage approvals at 13-year high
  • But young people who bore brunt of the crisis are priced out
Residential Housing As U.K. House Prices Jump Most Since 2016 in Post-Lockdown Boom
Photographer: Jason Alden/Bloomberg

Few places expose the uneven economic impact of the U.K.’s Covid crisis more clearly than the property market.

House prices have surged to new records and mortgage approvals are at the highest level since before the financial crisis as the affluent take advantage of rock-bottom interest rates and a transaction-tax cut to seek more space or leave urban areas. At the same time, millions struggle, with the pain of job losses falling hardest on the young and the low-paid.