Property experts are predicting that house prices could rise by 3-5% across the UK during 2022. Prices have been robust throughout 2021 and look set to continue as demand from buyers and low levels of stock remain unchanged.
Regionally, some areas will be more competitive than others and these include the South West, West Midlands, Yorkshire and the Humber and Scotland, where predictions for as high as a 7% increase. These forecasts by major property portals use a house price predictive model that draws on pricing data points across the property market and property expert analysis.
Since the end of the first lockdown the property market has seen frenetic activity and the pandemic has given rise to a shift in priorities provoking many more people to want to move, boosted by the stamp duty holiday. Now the situation as we look to the beginning of a new year is dominated by a continuing lack of homes available and estate agents faced with a limited supply of instructions but with an excess of buyers keen to move on.
We do believe that things will be calmer in 2022 compared with 2021. Faced with higher property prices, purchasers need to factor in affordability and in the second half of 2022, it’s likely that the bank base rate will rise, and higher inflation and higher taxes will be points for buyers to consider before committing to a property purchase.
Buyer demand is now currently up by 2% on the frenetic period this time last year, and up by 40% when compared with November 2019.
Sellers need to be mindful about their asking price during the first six months of next year, which will be the most active period in 2022. People will continue to place importance on finding a home that will offer them a lifestyle that works post pandemic as they reflect on their work/home life balance.
For some, a return to a more ‘sedate’ but strong property market will be more appealing. More properties may well come to the market and we anticipate a flurry in the spring from speculative sellers eager to proceed with their moving plans in the first quarter of 2022.
