How will the housing market shape in 2022?
The housing market continues to show strong signs long after the Stamp Duty Holiday finished. According to Nationwide, the annual house price growth hit 10% in November, pushing the average UK house price to £252,687 in November, almost 15% higher than March 2020 when the pandemic started.
According to Zoopla’s House Price Index report, it’s estimated that over 1.5 million homes are expected to exchange hands this year, beating the previous 2007 record when house prices were being pushed to a new all-time high.
The combination of people evaluating their living situation, the Stamp Duty Holiday, low mortgage rates, the new Help-To-Buy Scheme and the 95% government-backed mortgage has increased the number of buyers looking for a new property. Add the shortage of available properties in the market vs buyer demand, and you start seeing property prices push to an all-time high.
It’s estimated that over £473 billion in homes will be sold this year, a £95 billion increase from 2020.
The housing market looks set to remain strong in 2022. With the return of first-time buyers in the market, alongside an increased range of available mortgage products from lenders, first-time buyers are starting to gain a share of the market, which they previously led before the pandemic.
Lenders are also looking at long term deals to secure borrowers for an extended period of time. Kensington Mortgages recently introduced a 40-year mortgage deal, which will allow borrowers to have a fixed rate for the entire term.
With more people looking to work from home and with more employers adapting the Hybrid working model, this has also pushed homeowners to look for a new home. Homeowners working from home want to create a separate workspace, keeping their work and home life apart.
It’s difficult to predict whether the demand will taper off as we progress through 2022. What is certain is that the current demand will undoubtedly carry on for the first half of 2022.
Whether you are looking to Buy, Sell or LET, speak with our team today by calling 0116 266 9977!