It’s a fresh year, and in 2022, the majority of people, industries and businesses are still recovering from the aftermath of Covid-19. Although 2020 and 2021 had a damaging impact on the property market, somehow (perhaps miraculously), the UK housing market managed to stay afloat- and although there has been necessary increases and sudden price spurts, they were deemed an absolute necessity in order to keep the property market alive during the pandemic. However, in 2022, the year is looking for a lot more promising. As the world slowly gets back on its feet and recovers, We Buy Any House have delved into the top four things to watch out for on the 2022 UK property market.
Be Ready for Divisive Action:
Throughout the pandemic, the desire for a house soared massively. As those living in apartment blocks or sharing properties with friends or family decided that they needed their own property. Whether that be in case of another lockdown and limited outdoor access, or whether they feel they need their own space, the demand for properties up and down the UK soared. 2021 was categorised as the sellers’ market, as the buyer demand was incredibly high, however there were fewer properties available. This imbalance in the supply and demand chain has caused a competitive market to come to a head- and is something that will carry on into 2020. While this is great for those looking to sell their properties as you are more likely to find a buyer, from a prospective buyer’s perspective, you may need to push the boundaries if you want to find the perfect house this year.
Increased Price Growth:
Due to the competitive market, house prices are expected to continuously increase throughout 2022. Throughout November and December of 2021, house prices rose by 7% in comparison to the average numbers between the years of 2015-2019. From 2021, the average house price has risen by £24,500- which is a staggering figure. Property experts have predicted that although house prices are set to rise throughout 2022, it will be at a steady rate which will work in the best interest of first-time buyers. They also suggest that the reason these prices have increased is due to the cut stamp duty holiday, in addition to the fact that most people are spending time at home due to remote working and the pandemic.
Better Help with Mortgages:
A great piece of news in 2022 is that for those who are paying off a mortgage or are trying to apply for one, The Bank of England could help you massively. One of the key lending rules, which ensures borrows can afford up to a 3% rise in their mortgage rate before they are accepted for a loan, is set to be reviewed and potentially removed. This means that for those who have previously faced rejected applications, they may be able to not only have their application accepted but may also be able to take out a bigger loan.
Another way 2022 is set to help with mortgages is through mortgage length. In the past, the standard length of mortgage has been 25 years, however, more recently we are seeing mortgages that are 35-40 years long- and banks are not ruling out a potential 50-year mortgage repayment scheme. Although this may seem like a lengthy time to be tied to a payment scheme, it offers more flexibility with finances and can lessen the burden in terms of ensuring you have the right amount for monthly fees.
As we have had so many travel restrictions here in the UK, it has been hard for those who are invested in overseas property to go out to their chosen country and inspect the property market over there. However, due to the now relaxed government rules surrounding tracking and testing for international travel, 2022 is set to the be the year that international property thrives, after two years of being dormant. Not only does this mean that UK buyers will have the ability to go abroad, but it means that foreign investors can contribute to our UK property market, which will hopefully create more supply for the surge in demand that we are facing. With all this going ahead (without the worrying prospect of another variant), the UK should somewhat have a strong 12 months.
This article was written by a quick house sale company We Buy Any House. If you’re wondering “how can I sell my house fast?” or “how can I get someone to buy my house?”, head to the We Buy Any House website for more information relating to all property related enquiries.