Rightmove has revealed its latest UK housing market predictions for the year ahead. While 2021 saw some huge changes across the property sector, largely thanks to Covid, can we expect more stability in 2022?
Looking at what has happened over the course of 2021, the forecast for 2022 might seem a bit unclear. In terms of Covid, the UK is still getting used to a “new normal” in terms of how it has affected people’s day-to-day lives, with a huge rise in home-working being one of the biggest factors to have influenced the housing market.
The stamp duty stimulus also played a big part in keeping the sector moving during difficult times. There was a record-breaking number of transactions as a result of the tax holiday, which caused a frenzy of activity among homebuyers, movers and investors alike.
Now, Rightmove has set out its top housing market predictions, detailing what we might expect to see in 2022.
What might happen to house prices?
The property portal believes average asking prices will increase by 5% in 2022. This could add around £17,000 to the average value of a property – something for both homeowners and prospective property investors to consider.
Rightmove adds that there may be more housing stock coming to the market, which will make things easier for buyers. It states that it has seen a 19% increase in the number of people requesting estate agent valuations via Rightmove in the past month, as people look at listing their properties in the new year.
Property expert Tim Bannister comments: “While the 2022 property market will continue to be busy, we forecast it to be less frenzied than 2021, especially as more owners decide to come to market in the first half of the year.
“Movers will benefit from good mortgage availability, as well as more choice of property – especially with the usual surge of sellers coming to market in the spring. Price rises will be slower this year, compared to 2021, which will encourage some homeowners who have held back on moving to take action.”
Regional housing market predictions
According to Rightmove, there are four key areas that are proving particularly popular among buyers right now. These are Scotland, the West Midlands, the south-west and Yorkshire & the Humber. The portal believes these areas could see around 7% house price growth in 2022.
Interestingly, other indices and housing market predictions have placed the north-west top of the list of places to expect the biggest house price growth. The region has led the way in this respect in recent years, as it becomes a more desirable place to live and invest thanks to ongoing regeneration and redevelopment. This is coupled with the surge in big businesses and companies relocating their and boosting employment prospects.
What about London?
The capital’s property market has been moving at a different pace to the rest of the country in recent years. It has seen much slower house price growth, although transaction levels are still relatively high. Buyer demand, says Rightmove, is not as strong in the capital as in other areas.
While Covid could have influenced this – with more people who can now work from home seeking a better work-life balance away from the city – the trend began before the pandemic. However, like the rest of the country, London’s housing market varies vastly among its different sub-locations.
Tim Bannister says: “There will be hotspots and cooler spots across the capital, as there are so many different pockets operating at different speeds. International buyers have been more on the scene, and buyers across all budgets are finding some attractively priced properties.”
