- UK house prices rising at fastest pace since mid-2000s
- In past, house price growth has dampened UK exports
- Housing, construction can crowd out export-heavy manufacturers
LONDON, July 7 (Reuters) – History suggests Britain’s house price surge could threaten hopes of post-Brexit export-powered growth, if finance minister Rishi Sunak uses the housing market to fuel the economy like his predecessors did.
Stoked by his tax break on property purchases and a pandemic-driven rush for larger houses as more people work from home, house prices are rising at the fastest annual rate – at 13.4% in June – since 2004, lender Nationwide says.
The housing market holds totemic importance in Britain as a driver of wealth. Adjusted for inflation, house prices in Britain have grown since 1980 by more than in almost any other advanced economy, according to the Bank of…