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U.K.’s House Price Boom Driven by ‘Race for Space’, BOE Says

  • Central bank says desire for larger homes driving price rises
  • Possible changes to mortgage rules could up loans for 85,000

Britain’s house price boom has been driven by the “race for space” as people left city flats during the pandemic, the Bank of England says.

U.K. house prices rose 11.8% in the year to September, one of the fastest rates of growth in the past 20 years. About half of that rise can be explained by people wanting to move to larger homes, the central bank said.