Young people will pay the penalty for an ever-expanding house price bubble

Policymakers should be less worried about the risk of an imminent house price crash than the need to help the millions of people locked out of both home ownership and affordable social housing, writes Phil Thornton

With prices rising across all regions, the emphasis is currently more on ‘up’ than on ‘levelling’ (Getty)

Alongside England meeting Germany at the knockout stage of a football tournament, the rise of house prices in the UK seems to be one of those eternal features of post-war Britain. Last week’s news that the Nationwide building society had reported the strongest rise in residential property values for 17 years in June was a reminder that house prices are an ever-present and dominant factor in the country’s economic outlook.

Indeed, regional data for the three months to June indicated that all parts of the UK saw an acceleration in annual house-price growth. No wonder that Andy Haldane, the Bank of England’s outgoing chief economist, said recently that the housing market was “on fire”.

Part of the reason for the froth in the market is the decision by chancellor Rishi Sunak to extend a cut in stamp duty to the end of June, which could save buyers up to £12,500, and to unveil a new mortgage guarantee scheme for first-time buyers who cannot afford large deposits.