How on earth can UK house prices be at record highs right now?

Despite the pandemic, a surge in unemployment and a collapse in business activity, UK house prices are higher than they’ve ever been. John Stepek explains what’s driving prices – and asks if we’re heading for a crash.

House for sale sign © Luke MacGregor/Bloomberg via Getty Images
House prices: one way traffic?
(Image credit: House for sale sign © Luke MacGregor/Bloomberg via Getty Images)

House prices have hit a new record high. That, of course, is exactly what you’d expect after a global pandemic, and the resulting surge in unemployment and collapse in business activity.

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John Stepek

John Stepek is a senior reporter at Bloomberg News and a former editor of MoneyWeek magazine. He graduated from Strathclyde University with a degree in psychology in 1996 and has always been fascinated by the gap between the way the market works in theory and the way it works in practice, and by how our deep-rooted instincts work against our best interests as investors.

He started out in journalism by writing articles about the specific business challenges facing family firms. In 2003, he took a job on the finance desk of Teletext, where he spent two years covering the markets and breaking financial news.

His work has been published in Families in Business, Shares magazine, Spear's Magazine, The Sunday Times, and The Spectator among others. He has also appeared as an expert commentator on BBC Radio 4's Today programme, BBC Radio Scotland, Newsnight, Daily Politics and Bloomberg. His first book, on contrarian investing, The Sceptical Investor, was released in March 2019. You can follow John on Twitter at @john_stepek.