UK Property Market Forecast for 2022: Busy, but less frenzied.
According to Rightmove, strong demand for property will continue but will be less than the frenzy of the COVID era.
The UK property market is likely to return to more typical activity levels in 2022. Still, it will remain busy, with strong buyer demand to continue into next year and a rebound in homeowners seemingly preparing to sell, according to Rightmove.
The property’s website said that after 18 “hectic” months, the market was heading into a “less hectic” period, with a more even balance between buyers and sellers as more homes go up for sale and higher interest rates take some of the heat from buyer demand.
He said a sign of a return to more traditional conditions was his finding that the market had seen its usual “December dip”, with the median sales price of a house falling 0.7%, or £ 2,234, during the past month.
However, this figure across the UK hides regional variations: in London and Scotland, typical sales prices have fallen more than that, by 1.6% and 3.5% respectively, but in other regions such as East and West Midlands, increased as much as 1.6% over the last month.
Separately, UK Finance, the banking trade body, said a strong year for sales would make 2021 a record year for home loans.
He predicted that gross home loans would peak this year at 316 billion pounds, up 31% from 2020, and then fall again to 281 billion pounds in 2022 before rising to 313 billion pounds in 2023.
However, he added that mortgage arrears were expected to be 26% higher in 2022 than this year, reaching 102,000, compared with an estimated 80,800 in 2021, while home foreclosures were forecast to rise by 267. % to reach 7,700 in 2022, compared to an estimated 2,100 this year.
Their data follows a series of surveys that have described a housing market that continues to defy many expert forecasts. Last week, Halifax released figures showing median house prices in the UK rose 3.4% in the three months to the end of November, the highest quarterly rate since late 2006. Rival lender Nationwide said the Prices continued to rise in November, and we’re now 10%. Higher than a year earlier.
Rightmove said it was forecasting a market “closer to normal” during 2022, though that didn’t mean it believed the sector was headed for a dramatic slowdown – it already forecast home prices to rise 5% next year domestically. . However, he believes “some of the advantages will be taken away from sellers’ pricing power” by increasingly stretched buyer affordability and a better choice of properties for sale.
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