Everything You Need To Know About The UK Property Market In 2022
UK house prices are on the rise in 2022. But what does this mean for investors? Here’s everything you need to know about the UK property market.
Are you looking to start a new venture as a property investor? Or are you curious to know how your current investments will sell at the end of 2022?
2022 is a fascinating year for UK property prices as we start life anew in the first year since 2020 without New Year’s COVID restrictions. What does this mean for house prices?
Here is everything you need to know about the current UK property market and what this year holds for your investments.
What The Property Market Looks Like At The Start Of 2022
How much does it cost to buy a house in the UK?
2021 saw house prices rise by almost 10% into January 2022, with an average UK property search revealing the cost of a house is on average almost £275,000. This is nearly £25,000 more than January 2021.
Which areas are seeing the highest increase in property prices?
Property data shows that Wales has seen the highest national property price increases at almost 14%, with Scotland seeing the second-highest price increase at nearly 12%. The East Midlands saw the best overall regional growth, with London seeing the lowest % increase out of the whole of the UK’s regions at a little over 2%.
Why have house prices increased over the past year?
The cost of living increased by almost 5% over the course of 2021, with a steady increase month on month by January 2022. Fuel, gas, building materials, clothing, and furniture are just some of the prices that increased over 2021, leading to a subsequent increase in house prices.
In addition, the COVID-19 pandemic led to fierce competition over house prices, leading to twice as many homes selling for their asking price when compared to the previous decade. The market towards the end of 2021 was still very much a seller’s market, with buyers much more willing to pay the asking price than ever before.
How will the start of 2022 affect my property investment?
Property investors looking to sell in early to mid-2022 will benefit from the increase in national house prices and an increase in those looking to move now restrictions have lifted. Those looking to purchase may be wondering whether house prices are set to fall later on this year. At present, it is still looking like a seller’s market due to increased demand.
Projections From Property Experts For The Rest Of 2022
Will there be more UK property for sale in 2022?
Property data suggests that more properties are entering the market, reducing the supply issues seen with available properties in 2021. The South West, Yorkshire, and the South East have all reported an increase in the available property of between 10 and 12%, while London and the North East have seen less than half of that increase.
How will this impact house prices?
House prices are projected to stabilise in 2022 between a 4% to 7% price increase, as more houses entering the market this will slightly reduce buyer demand. This means that the cost of houses will likely stabilise later in the year, with every growing supply issue in housing markets stabilising. For higher-demand locations such as properties within cities that cover more apartments, we are still set to see growth rates at around 10%.
Increased legislation on UK landlords has also seen an increase in those looking to sell their homes, with 1 in 5 UK landlords predicted to sell former rental properties in 2022. Whereas many landlords raised their rental prices last year, now due to the introduction of increased renter’s protection, many will sell their properties in favour of new investment opportunities.
Will this affect my property investment?
Despite the forecasts predicting a stabilising of property prices, 2022 is still a great year to invest in property. There is a constant need for housing for the UK population, which continues to rise year on year. The start of the year shows good opportunities for selling, while the latter half of the year promises to be more of a buyers market within the housing market.
How Property Investment Contact Can Help
Property Investment Contact can provide insight into the 2022 housing market, with access to off-market opportunities to those looking to invest. We can accurately predict UK housing market trends so you can purchase and sell an investment property at a profit to your business.
We also help source property on your behalf and act as your partners over time to really help develop your property portfolio and investment opportunities.
Contact us today for impartial advice and a free initial consultation to see how we can help you with your property investment.
