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Property Investment

What Will Happen to House Prices in 2022?

The property market in England and Wales has been on a roller-coaster ride since the market opened up after the pandemic lockdowns. The renewed market impetus driven by an extended period of pent-up demand was further boosted by Government incentives like the Stamp Duty discount period which finally ended in September. So now these incentives have ended, what is on the cards for house prices in 2022? We find out…

It was fully expected that the property market would fall off a cliff edge once the Stamp Duty holiday ended. However this has not been the case and, in fact, it now seems the property market is on track to see an upturn in house prices in the New Year based on two new pieces of research.

Five Percent House Price Rises in 2022 Says Rightmove

One of the UK’s leading property portals Rightmove predicts that house prices across England and Wales will rise 5 per cent next year. It says the national asking price of a home – which is currently £342,401 will rise by about £17,000. It has come to this conclusion because it is still seeing a huge number of home-hunters looking to move, and not enough homes available to buy, so this imbalance continues to push prices up.

Rightmove believes 2022 is set to bring fresh opportunities for new year buyers as it has already seen a 19 per cent jump in the number of people requesting estate agents to value their home via Rightmove this month compared with the same period last year.

The portal also predicts that Scotland, the West Midlands, the South West and Yorkshire and the Humber are likely to see a higher rate of house price growth next year. It says house prices in these most in-demand regions may rise by 7 per cent.

By contrast in London, where house prices haven’t risen as much as they have in the rest of the country, and buyer demand is not as strong, Rightmove forecasts slightly lower price growth of 3 per cent in the Capital.

Here’s what Rightmove’s property expert Tim Bannister said: “While the 2022 property market will continue to be busy, we forecast it to be less frenzied than 2021, especially as more owners decide to come to market in the first half of the year.

“Movers will benefit from good mortgage availability, as well as more choice of property – especially with the usual surge of sellers coming to market in the spring. Price rises will be slower this year, compared to 2021, which will encourage some homeowners who have held back on moving to take action.”

House prices in England and Wales to rise by 1.3 per cent from November – January 2022 Says Reallymoving

The property market in England and Wales is on track to see an upturn in house prices in the New Year based on sales agreed in October, as a nationwide shortage of stock forces buyers to compete to secure a home, according to the reallymoving House Price Forecast of October 2021.

Reallymoving’s data, which captures the purchase price buyers have agreed to pay when they search for conveyancing quotes through the comparison site, typically 12 weeks before they complete, predicts 2021’s summer boom being followed by values dipping marginally in November (-0.1%) and December (-1.1%), before surging again by +2.5 per cent in January 2022.

Rob Houghton, CEO of reallymoving, commented: “Transaction volumes are unsurprisingly down, since the end of the stamp duty holiday but the outlook for the housing market in early 2022 is positive.”

 

 

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Alex Wright, Editor