It’s no secret that predicting the UK housing market can be a tricky business. When the pandemic first struck, reports forecasted that house prices could topple by as much as 16%, and homeowners braced themselves for the worst.
Yet, over the last two years, we’ve seen house prices shooting up and the UK property market has been booming, much to everyone’s surprise.
In this article, we discuss the current predictions of the UK housing market, alongside a few top tips to consider when buying a property in 2022.
The climate of the current UK housing market
Alongside the stamp duty holiday and the rise in remote working, many people decided to buy in 2021, resulting in a competitive market that was quickly inclining. Recent research from The Guardian reveals that the pause on stamp duty alone helped over 1 million homeowners to purchase properties last year – the highest figure since before the worldwide financial crisis. It is now widely believed that the rise in house prices will begin to ease and stabilise gradually over time.
What does this mean for homebuyers?
With the UK housing market set to stabilise, buying property should become more accessible as prices become more affordable once more. It also means there should be a better balance for supply and demand across UK houses – meaning first time buyers who are still attempting to leap onto the property ladder, can finally look forward with hope.
What to consider when buying property in 2022
The main message for buyers in 2022 is to consider biding your time if at all possible. With the market set to stabilise, house prices are due to gradually fall, and there could be far better opportunities in the next 12 months where you could bag more for your buck! If budget is a real concern for you, now could be the optimum time to consider saving for a little longer in order to have more dream homes available to you in the not-so-distant future. A silver lining to all of this, however, is that mortgage rates are exceptionally low as it stands, meaning many buyers who require a large deposit can still find deals with rates that are below 1%.
All of this considered, it’s important to remember, as with any market, it’s always difficult to predict the future. The rise in house prices that we’ve seen over the past 2 years completely defied all expectations. It’s always a wise idea to keep up to date on property news articles. Familiarise yourself with conveyancing processes, keep an eye on mortgage rates, and be as prepared as possible in the meantime. Close monitoring of the UK housing market is sure to continue as changes can occur when we least expect them.
