The last 18 months have seen unprecedented trends in the UK property market.
At the start of the pandemic, many feared a house price crash. However, quite the opposite has happened. The stamp duty holiday, low supply and unseasonably high demand have all contributed to exceptional and unpredicted house price growth.
So, what does the next year have in store for the property market and those hoping to move house? Danny Luke from quick house sale company Quick Move Now give us his top property predictions for 2022.
“Heading into the new year, it doesn’t look like the strong levels of demand we’ve seen in 2021 will die down quite yet. I suspect that, certainly during the first half of 2022, we will continue to see demand outstrip supply. This, in turn, will continue to keep property prices robust.
“I suspect there may be a few things that will help to stabilise the market somewhat in the latter half of the year. Firstly, we are likely to, at some point, see more housing stock coming onto the market. Those who have displayed cautious approach to property throughout the pandemic, and taken a ‘wait and see’ approach, will start to feel that life has to go back to ‘normal’ at some point and begin to make plans for the future again. We are also likely to see more job changes in the next 12months, which will create a strong need to move house and location for a number of homeowners.
“The other big topic for 2022 is going to be interest rates. The Bank of England has remained at a record-low rate for most of this year, and it’s simply unsustainable that rates will remain as low for much longer. We have already seen the mortgage industry prepare for rising interest rates by withdrawing some of their lowest rate fixed deals from the market. Rising interest rates mean more expensive mortgage repayments, which will undoubtedly have an impact on property prices and buyers’ ability to borrow.
“Overall, I think 2022 will be a positive year for the property market. The overall trend, I believe, will be a gradual return to a more stable and steady property market, which will benefit both homeowners and those hoping to get onto the property ladder.”