House prices are ‘likely’ to ‘continue to rise’ – 2022 house price predictions
Martin Roberts discusses the rise in house prices
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The Covid-19 pandemic has meant that many people have decided to move property, in search for more indoor space. Prices increased for both renters and buyers last year as the property market continued to see demand from Britons. So what does 2022 have in store for house prices?
Johnathon Rolande from The National Association of Property Buyers told Express.co.uk: “House prices are likely to continue to rise next year but I don’t think we will see the double digit rises which 2021 delivered.
“Those selling flats and apartments could see the largest rises, as these property types are becoming more and more popular.
“The continued lack of availability of stock levels will also continue to impact prices.
“Stock levels are very low due to the pandemic as building stopped for a while and demand is very high.
“Even cash buyers or movers are struggling – and it’s going to be tougher for a new buyer on a budget, the young and first time buyers.”
The average UK house price surpassed £270,000 for the first time towards the end of 2021.
However, the expert has explained that the property prices will not be as high as the previous year.
According to experts, this increase in house prices is set to continue through 2022.
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Kevin Shaw, National MD Sales, and Michael Cook, National MD Lettings, LRG, explained that the landscape for house prices will rise.
They said: “With buyer demand pushing prices to a record high, next year we expect to see a price growth of around three percent for house sales.
“The Northwest, Midlands, East Anglia, and Essex are likely to see higher than average growth for rent and house prices in 2022.
“This is in areas where movers get more bang for their buck and where they can fulfil their desire to have more space following the lockdown-inspired surge to suburbs.
“Likewise, investors purchasing in the Midlands and North are benefiting from preferable mortgage deals with better loan to value ratios, improving yield and monthly cash returns on investment.
“It’s because of this (despite historically strong equity growth in the south), buy to let activity has been more prominent in the Northern towns in 2021 and we expect this to continue in 2022.
“Despite businesses starting to return to offices, many employers are still working to hybrid models, and this opens more buying options outside of traditional high employment areas such as major cities and commuter towns.”
However, it isn’t only homeowners that have faced increased prices throughout the last year.
Renters wishing to move have also found it tricky in the last year, with the lack of property on the market forcing prices to increase.
Kevin and Michael said: “In terms of rent, there has already been a bounce back to pre-covid levels in cities.
“But we’ll likely see a rise in rent prices primarily because of a supply gap, with some landlords choosing to sell their property in a very good sales market.
“We predict that there will be a three percent rise in rent across the country and that could even reach up to five to 10 percent in some high-growth areas.”
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