Property prices likely to continue rising
After the rollercoster year of 2020, 2021 was a difficult year to predict in the housing sector.
With a return of stability to the market, we can look at the forecast for the new year.
More than 22% of homeowners plan to move in the next 18 months, due to direct results of the pandemic. In a recent survey, it has been revealed that those most likely to move were younger people who live in cities, suburbs or large towns, and those who have had working patterns shift from COVID-19.*
According to Zoopla, the main drivers for the sector will be “an ongoing re-evaluation of housing needs, increased housing equity and moves in parts of the labour force to more hybrid working.”
The portal forecast a 3% increase in house prices across the UK in the next 12 months, which is predicted to affect around 1.2 million property transactions.
With the expected house price gains, it is likely that we are going to see more sellers coming to market in the coming months, but a continued low supply will support price inflation.
Housing remains affordable in many markets and competition with mortgage lenders will keep rates low, leading to a sturdy appetite in the sector for 2022.
There will always be waves of demand across the country, with the biggest price increase expected to continue in the North West’s flourishing market at +4%.
Zoopla has also suggested that because mortgage rates are at a record low of 0.1%, buyers are becoming accustomed to these low rates. It has been predicted that rates will reach an average of 3% by the end of 2022, giving buyers a push to act sooner rather than later to secure cheaper borrowing conditions.
If you are looking to take advantage of current property conditions, book your valuation now and put yourself in a good position for 2022.
*Zoopla
This article was originally published by BriefYourMarket and is reproduced here with their permission.
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