What Can We Expect from The Property Market in 2022?
The housing market boom we have seen since the middle of 2020 has been a surprise to everyone. House prices have rocketed to all-time highs, seemingly breaking all records set, as buyers’ priorities shifted beyond anything we have seen before.
It has been a volatile year for many industries but the property market is something of a success story with the stamp duty/LBTT holiday, low interest rates, increasing availability of high LTV mortgage deals and a re-evaluation of what people want from their homes marking a move towards more rural locations.
Buyer priorities have shifted beyond recognition as the pandemic meant spending much more time at home leading to an increased demand fore more internal space to accommodate home working and external space following a year of being cooped up.
According to the latest Halifax data, the UK average house price has increased by 0.7% from July to August with a record-high average property price in the UK.
Although house price inflation will slow down as it inevitably must, Halifax data shows support for this as inflation has hit a five-month low of 7.1%.
Even though the stamp duty holiday has come to an end, there will still be high demand for homes as sellers are still inclined to list their homes for sale as the UK opens back up again from a series of lockdowns and people feel less restricted following a successful vaccination programme.
Into next year, supply and demand should level out and this could result in a return to more normal market conditions. Once the lockdown-savers have completed their plans, house price inflation should slow down. However, we are seeing more and more people working from home either part or full time, and this means there is still demand for homebuyers to find an additional room to accommodate home working. What’s more, with the Mortgage Guarantee Scheme we are seeing an increased availability of high LTV mortgages for first-time-buyers with a small deposit.
Clyde Property is a leading independent, multiple award-winning estate and letting agent with more than 30 years’ experience in selling and letting property in Scotland. Just calltoday for friendly, impartial advice on finding your next dream home.