What are the property market predictions for 2022?
Christmas is fast approaching and the sales and lettings teams at Daniel Cobb are looking forward to a few, well-earned days off after a hectic year. As Managing Director, I want to extend a heartfelt thank you to all our clients, who have put their trust in us over the past 12 months despite facing some very challenging circumstances.
As we anticipate the start of a new year, it is a good time to consider how the housing market might perform in future months. Here is an overview of current market conditions, together with some property price predictions for 2022.
Low housing stocks keep prices high
The market experienced a mini-boom during 2021, raising the average cost of a UK home by 6.9 per cent over the past twelve months.
While you might expect prices to fall after a boom, this has not happened to any significant degree. This is because a remarkable 1.5 million property transactions took place over the past year, leaving a shortage of available homes.
Rightmove has reported that the number of properties listed for sale hit a record low in December. At the same time, valuation requests rose by 19% (compared to December 2020 figures), indicating that even more people may be getting ready to move in the New Year.
The latest housing market predictions suggest demand for properties will continue strongly.
Mortgage rates remain low
Low mortgage rates and competition for available properties should keep prices buoyant as we move into 2022.
The Bank of England has just raised interest rates by 0.25 per cent, but mortgages nevertheless remain at affordable levels. The bank is currently considering the removal of the Mortgage Affordability Test, which could make it easier for buyers to purchase more expensive properties. This could also help first time buyers obtain mortgages on more costly homes.
Today’s house price predictions suggest prices will continue to rise – albeit more slowly – during the next year. London home values are predicted to increase by between four and five per cent in 2022, as overseas buyers return to the capital.
So we look forward to another busy year ahead. As always, if we can assist you with your moving plans, we would be more than happy to help. All that remains is for me, and everyone at Daniel Cobb, to wish you a merry Christmas and a Happy New Year!