The housing market has boomed this year. We look back on the property market trends and what may be in store for 2022.
The property market has positively soared in 2021, despite the pandemic and its adverse effect on the economy.
House prices have continued to rise. Halifax recently reported a price rise for the fifth month in a row in November, with growth at a 15-year high.
Rising house prices
According to Zoopla’s house price index, prices rose by £16,000 in the year to November. The property website reported that prices jumped by 7.1 per cent in 2021. Every region of the UK has seen prices increase this year, with Wales and the North West showing particularly strong growth.
Average prices in Wales went up by 11.1 per cent in 12 months and the North West by 9.1 per cent. A spokesperson for Zoopla described 2021 as a ‘record year for the market’.
London showed a more modest growth of 2.4 per cent as more people seek to move out to the countryside.
Zoopla is predicting that one in 16 homes will change hands by the end of this year, making the property market the busiest since 2007.
Buyer demand
Buyer demand is expected to remain strong in the new year. Last year, property searches more than doubled after Christmas Day according to Zoopla.
There are still more buyers than properties. There is an average of 29 buyers for every available property on the market according to the website, Propertymark. This is a 21 per cent increase from October.
‘A lot of our advisers are speaking to people who are desperate to move but can’t find anything to buy,’ says MB Associates Sales Manager Phil Leivesley.
In November, 38 per cent of properties sold for more than their original asking price according to Financial Reporter. This is an increase from October when the figure was 21 per cent. Last year, just ten per cent of properties sold for over the asking price.
Interest rates have recently risen, which was a surprise for some. The Bank of England’s Monetary Policy Committee announced on 16th December that it had voted to lift the base rate to 0.25 per cent. Expectations of an increase had been dampened by the spread of the omicron variant and its anticipated threat to our economy.
Mortgage payments
If you’re on a fixed rate deal, your monthly payments will remain the same. If you’re on a variable rate, your monthly payments will increase. If you have concerns about the rate increase, we’re here to help you navigate your way through this uncertain time.
There are predictions that the market will slow after the end of the first quarter in 2022, with Nathan Emerson, Chief Executive of Property mark commenting that the current level of demand ‘cannot last forever’.
If you would like help with your mortgage, we can advise you and answer any questions you may have.