With average house prices in the UK set to reach an all-time high in 2021, buyers, sellers, and estate agents are all waiting to see what the future brings. Will prices continue to grow dramatically, the UK real estate market, decelerate, or will supply eventually catch up to demand? The introduction of the stamp duty holiday was one of the reasons for the dramatic increase in the average price of a property in 2021. Will the real estate market suffer now that the stamp duty vacation is ended? Or has the implementation of the stamp duty holiday, together with low loan rates, already set the stage for ever-increasing housing prices? This is what experts expect for the UK real estate market in 2022.
Rightmove predicts a 5% increase in housing prices in the UK by 2022. According to Finance Hub 2022, the average property price in the UK rose 3.4% from September to November, the fastest quarterly increase since 2006. Nationwide experts claim that prices rose again in November 2021, resulting in a 10% increase in the average house price from November 2020 to November 2021. But most analysts anticipate that an increase in the number of homeowners looking to sell, along with new developments and current housing projects in the UK, will ease the buyer’s burden in 2022.
A 5% increase in the average UK asking price represents a £17,000 increase in 2022. According to Rightmove, the number of persons requesting a free house appraisal increased by 19% in November 2021 compared to November 2020. As more buyers and sellers enter the market, the rate of price rise may accelerate. However, most experts expect UK house prices to continue rising in 2022.
Experts predict a more ‘normal’ UK property market in 2022, although prices will continue to rise. Experts predict that robust buyer demand in 2021 will continue 2022. With so many homes ready to sell, the supply may catch up to the order. Essentially, analysts believe the UK property market in 2022 will be less ‘frenzied’ than in 2021.
However, the UK property market has seen the ‘December drop’ standard in most global home markets. Around the holidays, house prices in the UK fell 0.7%. The average asking price in London has declined by 1.6%, while it has fallen by 3.5% in Scotland. In the East and West Midlands, the average asking price rose 1.6%.
The number of homeowners asking estate agents to appraise their properties has risen by 19% since last year. Experts believe many homeowners are considering selling their houses over or after the holidays. One factor is the Covid-19 epidemic and the idea of working from home. Now that individuals have to stay indoors, they want to improve their homes and lifestyles. Most homeowners will need to upgrade their homes. Also, most professionals now work from home, eliminating the need to commute. As a result, many young professionals are moving to the boroughs. Because property in the suburbs and boroughs is cheaper than in the city, buyers and homeowners are looking to relocate to larger homes in the outskirts.
Areas with the highest expected price growth in 2022 include West Midlands, South West England and Humber. Price increases of up to 7% are predicted for these localities in 2022. Some experts estimate a 3% increase in the average house price in London next year.