MNI BRIEF: UK House Price Growth At 6-Year High​​​

UK house price growth ended the year at the highest level in 6 years, overcoming the impact of the Covid-19 pandemic 7.3% higher over the last 12 months, data published by the Nationwide Building Society on Wednesday showed. On a monthly basis, the average house prices rose 0.8% m/m in December, the data showed. Prices were 5.3% higher than those at the end of March when the pandemic all but closed the UK economy.

"The resilience seen in recent quarters seemed unlikely at the start of the pandemic. Indeed, housing market activity almost ground to a complete halt during the first lockdown as the wider economy shrank by an unprecedented 26%," Nationwide's Chief Economist Robert Gardner said.

Looking ahead, Gardner said the outlook was "highly uncertain" and dependent on how the pandemic and measures to fight it evolve, with behavioral shifts offering some support. "However, housing market activity is likely to slow in the coming quarters, perhaps sharply, if the labour market weakens as most analysts expect, especially once the stamp duty holiday expires at the end of March," he added.