House price inflation will continue for now, hitting the young and low-paid | Larry Elliott

Three main factors are propping up prices but eventually a lack of first-time buyers will slow them

When house prices started to rise in the summer of 2020 there was an easy explanation. Potential buyers, it was said, had been deterred by the tough lockdown imposed when the Covid crisis began and so there was a burst of pent-up demand as restrictions were eased.

When property inflation continued during the autumn and winter it was put down to Rishi Sunak's stamp duty holiday for all properties up to 500,000. But pent-up demand no longer looks a convincing reason for the house price inflation of 10.9% reported by the Nationwide building society, and anyone trying to take advantage of the chancellor's tax break would have needed to have had an offer accepted before now.