How Will the Housing Market Look in 2022?
After a “frenzied” couple of years the housing market will be stable but busy in 2022 according to property portal Rightmove. The strong buyer demand, which has been a feature of the sector recently, will continue into the New Year. However, things will be “less frenetic” as more sellers come to the market, shifting the current imbalance between supply and demand.
Says Rightmove, the market has seen the usual “December dip”, with the average asking price of a home falling by 0.7% – or £2,234 in the run-up to Christmas. The figure for London is 1.6%.
Rightmove has already predicted that house prices will rise by 5% next year, nationally. The portal reports that home valuations are up by 19% on the same time a year ago – when the stamp duty holiday was still in place, suggesting that, “more people will be making a new year resolution to move”.
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According to Tim Bannister, Rightmove’s director of property data, a likely New Year interest rate rise will have the effect of moderating the market. “A slowing of the fast pace of sales, and associated pace of price rises, will help the return to more normality that will suit many movers,” he said.
Recent market conditions are generally thought to be the result of the government’s stamp duty holiday, which pushed up prices and fuelled demand, before it ended on 30 September. The boost to the market has also been attributed to pent-up demand during lockdown, new government-guaranteed mortgages and the desire for more indoor and outdoor space. Buyers looking to fix their mortgage rates before an interest rise has also been seen as a factor.
Read more about this story on The Guardian website.