UK Housing Market 2022: Things to Know.

Throughout the Coronavirus pandemic in 2020, most industries took a turn into uncertain times. As the virus took over all aspects of normality and claimed the lives of millions, we world became confined to our homes for the best part of a year. As the world came to a standstill, our lives and the economy began to dwindle. The consequences of the pandemic have caused a lot of disruption to various industries and sectors, and the property industry isn’t an exception. The world of property took a turn for the worst, with housing prices, property viewings dropping dramatically and coming to a halt. Those working in the property sector were left wondering what the future holds, and those who were in the midst of buying and selling properties faced setbacks and unprecedented problems. The UK housing market has begun to find its feet again after the tumultuous year of 2020 and a large portion of 2021. However, the setbacks faced by the property market have caused uncertainties that will have lasting consequences. As we approach 2022, We Buy Any House have decided to explore the prospect of the UK housing market as of next year. 

Price Predictions: 

Property forecasts show that as of 2022, house prices are expected to increase by 3{d966c26520581300f0f8c6ae1864c22b3d2cc354c8098608bb97d019d5fdbcb7} throughout the year. Additionally, there are thought to be around 1.2 million housing transactions to occur, as more sellers are expected come onto the property market. Yet despite this, a there will be a continuous low supply of houses, which will ultimately support the increase of price inflation. This means that houses will still remain affordable across many markets, and the increased competition between mortgage lenders will help keep these rates low, leading to a strong appetite in the property market througout next year.  

Due to the Stamp Duty holiday which we saw earlier this year, an artifical surge for houses was ignited- however experts predict that going into next year, we are likely to see this taper off. This is also the reason as to why there could be potentially up to 20{d966c26520581300f0f8c6ae1864c22b3d2cc354c8098608bb97d019d5fdbcb7} less transactions throughout the property market next year.  

Mortgage Rates: 

Remaining at 0.1{d966c26520581300f0f8c6ae1864c22b3d2cc354c8098608bb97d019d5fdbcb7}, the rates provided by the Bank of England are at a record low. However, most experts expect this to rise in the near distant future. Unfortunately, this is set to have a knock-on effect in regards to mortgage rates, and has left a lot of potential buyers feeling as though they should invest sooner rather than relying on cheap borrowing. In the past few years, people have become accustomed to the low mortgage rates provided, and as of 2022 they could have reached an average of 3{d966c26520581300f0f8c6ae1864c22b3d2cc354c8098608bb97d019d5fdbcb7}. Although this will have been the highest since 2015, it is still extremely low 

North-West Vs. London: 

There will be no change in the fact that there will be inevitable polarisation across the country. In the North-West, there is expected to be a burgeoning in the property market, at sound +4{d966c26520581300f0f8c6ae1864c22b3d2cc354c8098608bb97d019d5fdbcb7}. However, London will still remain the slowest part of the UK, despite affordability remaining well above average for the first time since 2016.  

Towns in Greater Manchester such as Rochdale and Bolton, alongside other places in the North-West such as Blackburn are seeing an increase in growth of more than 10{d966c26520581300f0f8c6ae1864c22b3d2cc354c8098608bb97d019d5fdbcb7}- which coincides with the notion that cities in the North such as Liverpool and Manchester are paving the way for the UK annual house prices, as there has been a respective rise of between 8.7{d966c26520581300f0f8c6ae1864c22b3d2cc354c8098608bb97d019d5fdbcb7} and 10.4{d966c26520581300f0f8c6ae1864c22b3d2cc354c8098608bb97d019d5fdbcb7}. 

Rental Market: 

In late 2020 and early 2021, it became a huge surprise that renting was officially cheaper than buying. This was due to the finalised prices of monthly payments in comparison to mortgage rates. Since 2020, the rental market has continued to grow from strength to strength, with experts predicting by 2025, the market will have risen by 9.5{d966c26520581300f0f8c6ae1864c22b3d2cc354c8098608bb97d019d5fdbcb7} as the demand increases.  

This article was written by a quick house sale company We Buy Any House. If you’re wondering “how can I sell my house fast?”, head to the We Buy Any House website for more information relating to all property related enquiries.