With 2022 just around the corner, those thinking of buying or selling a property in the new year will be considering the shape of the property market. Here are the predicted property trends for 2022, as forecast by industry experts.
House prices are predicted to rise further
Zoopla is predicting a house price increase of more than 3 per cent – around 3.5 – by the end of 2022. Although a far smaller increase than this year, which has seen UK house prices soar by almost 12 per cent, it is predicted that prices will continue to rise at a steady rate in 2022 and the years following.
Less properties will be sold than in 2021
It is predicted that around 1.2 million property transactions will take place next year. This is a decrease of 300,000 compared to 2021, but the post lockdown property surge and stamp duty holiday fuelled an increase in transactions this year. This would still be a healthy number of property sales for 2022 – especially when demand continues to exceed supply.
Currently, the number of property searchers is 30 per cent higher than average, so the market is fast-paced and demanding. This trend is expected to continue into 2022.
Increase in mortgage rates
The Bank of England has announced that it will soon increase its base rate from its current all-time low of 0.1 per cent. This is essential to return inflation to the Bank’s target of two per cent.
As a result, mortgage interest rates will be forced to rise. However, the competitive mortgage market should ensure that these increases are not dramatic, keeping rates relatively low for home buyers.
House price increase in Andover and Whitchurch
House prices in Andover, Whitchurch and the surrounding areas are likely to rise further in 2022. Due to pandemic lifestyle changes, properties further from cities that boast more space are in demand.
Well-placed commuter towns like Andover and rural villages like Whitchurch are expected to continue to grow in popularity. Close to the countryside and well-connected to business centres like London, demand for properties in our part of Hampshire are likely to continue to drive up prices.
Although properties in the North of England are predicted to increase in value the most, prices in the South can also expect a steady increase over the course of 2022.
For property advice, mortgage advice or a free valuation from local experts, get in touch with the Graham & Co team.