07 Dec The UK Property Market in 2022
You may think that looking into the future and making predictions about how the property market is going to look in the New Year might not be the best idea; especially as we are in the midst of one of the most unpredictable periods in recent history. But we’re going to have a go and maybe this time next year we can have a look at how we got on.
We have all been through turmoil over the last 24 months, and it looks like there may be more on the horizon but there is also some light at the end of the tunnel. While some buyers and sellers are somewhat reluctant to take the plunge and move home before the market has settled, many are continuing to jump in with any traditional seasonality of the market going to one side.
Remember, if you’re thinking of moving to this area in the new year, take some time to browse our properties for sale in Virginia Water and the surrounding areas. If you have any questions, you can also visit our award-winning website or call us on 01344 843000 and email us.
What’s currently happening?
It’s been a relentlessly busy year for us and much of the property market. Government schemes such as the Stamp Duty holiday and mortgage guarantee have given people better affordability and confidence in the market and really propelled the economy into some sort of recovery, during and after the main waves of the pandemic.
The key driver locally is many people are reassessing their lifestyles and so, movement in the market has continued regardless of the cessation of support schemes with a good percentage of our buyers continuing to come out of London.
This flood of buyers into the market has created a supply and demand bottleneck in the market with vendors having their pick of the best buyers. This is driving house prices up as buyers compete for this small pool of properties.
By the end of this year, many industry experts expect the average price of a home in the UK will return to the £258,000 mark. This year, the average house price sold through our office in Virginia was a massive £3.5m; this, in a year that was supposed to suffer in the wake of the 2020 pandemic. While some high street agents predicted house prices to slump by 5-10% in 2021, it turned out to be a bumper year for the property market. So, will this continue into next year?
2022 house prices
With interest rates due to rise gently over the next few months, we might start to see a slight drop in house prices as buyers’ affordability is impacted by this rise, and vendors are forced to price their properties more competitively to attract buyers.
The demand for properties will remain; some experts in the industry are suggesting that more than a fifth of households could be planning to move over the next 18 months which will certainly support house prices in terms of supply and demand.
Remote working will continue to be a deciding factor for many people. The need to live within a regular commutable distance from the office has diminished as businesses switch to a more remote, flexible, and agile way of working – cue the rise in searches for properties with a Home Office.
When to buy
This year’s rise in house prices left many people wondering if now was a good time to buy, are prices going to continue to rise or is there a dip on its way. The advice to follow is that if the house that you want to buy is available and affordable then waiting might not be the best idea. Currently, there are low-interest mortgage products available, the longer you wait, the more likely these will disappear as we enter into Q1 of 2022.
If you have a smaller deposit then you might be able to take advantage of the government’s mortgage scheme to help with landing your next home. The most important thing to do is speak to a property expert to go through your options.
Get in Touch
If you are thinking of moving to the area or buying a property to rent, make sure you take a look at our amazing catalogue of properties for sale in Virginia Water and the surrounding areas.
If you’d like to speak to someone about properties to let in Virginia Water, a member of our expert team would be happy to help. You can call us on 01344 843000 or email us. You can also follow us on Facebook, Twitter, Instagram, and LinkedIn.