DAVY VIEW

This morning’s Nationwide house price index, up 2% on the month and with annual inflation running at 3.7%, adds to the evidence that pent-up demand and Rishi Sunak’s stamp duty holiday have driven a sharp rebound in housing market activity and price expectations. However, this mini bubble will probably be temporary, pricked by budget austerity measures and as job cuts become apparent with the furlough scheme ending in October.