It has been a turbulent time in the housing market since the start of the pandemic and 2022 looks to be another busy year although one that should be less chaotic. House prices have soared during the pandemic and this is largely attributed to the stamp duty relief (now returned to pre-COVID levels), low-interest rates and the rise of remote work with many people looking to buy larger homes and move away from major cities like London.
So, what will the housing market look like over the next 12 months?
House Prices Continue to Rise
Experts believe that house prices will continue to rise in 2022 but at a slower rate to 2021. Many people will still be looking to move in 2022 due to changes in life that the pandemic has brought whether this is working remotely, adding to their families or having to downsize just as a few examples.
Cost of Living Slows the Market
It is also likely in 2022 that the increased cost of living slows down the market. With inflation soaring, taxes rising, energy costs skyrocketing and interest rates low, many people will be feeling the squeeze in 2022 and could delay any moving plans that they have.
First-Time Buyers to Struggle
It will continue to be difficult for first-time buyers to get their foot on the ladder even once the market starts to cool. House prices, the increased cost of living and high demand will make it difficult for first-time buyers to get their foot on the ladder. Those looking to buy for the first time should look into schemes that are available that could help, such as a Lifetime ISA.
Supply Chain Issues
2022 will be another year with supply chain issues that will delay construction and further push property prices up. The pandemic and Brexit are affecting the delivery times and costs of key materials, such as cement, breathable roof membranes for roof installation and bricks that are impacting both house building and home improvement projects.
Regions On the Rise
The pandemic has changed people’s lives and given greater time for reflection. This has led many people to make a move, especially those that are able to work remotely. This will continue in 2022 where more people will move to regions that might offer a better quality of life and/or better value for their money. Areas that are rising in popularity include the south west, the west midlands, Yorkshire and Scotland.
These are a few of the housing market predictions for 2022. It has been a frenzied time in the UK property market since the start of the pandemic, which will slow in 2022 but it will remain a busy year and prices will continue to rise albeit at a slower rate.