- 2 May 2022
- Posted by: admin_gray
- Category: Property
Written by Sapphire Savvy Women Group.
Property prices in the United Kingdom climbed by an incredible £27,000 by the end of 2021, when the standard house price was £275,000, the highest ever recorded. By the end of December, all the UK nations had seen various rises, which will now be given in order of lowest to highest: England and Northern Ireland 10.7%, Scotland 11.2%, Wales 13%. As shown in Homebuilding.co.uk.
High prices and steady demand contrast sharply with rising living costs, and some analysts believe that higher interest rates and rising inflation will cause the housing market to stagnate in 2022.
Which cities have seen the greatest increase in house prices?
Mountain Ash in Wales had the highest property price growth in the UK in 2021, it recorded a 31% spike in prices. Additionally, Wales was the region’s highest-priced region in 2021, with average prices increasing 10.5% from 2 years ago. Southwest and southeast came in second and third, respectively.
Using data from the Office for National Statistics, HouseholdQuotes conducted a separate study which found that some London boroughs had experienced substantial property price increases over the past 20 years, including Kensington and Chelsea, where prices risen by £863,000. Almost twice as many new houses came to market in January in Bexhill-on-Sea, East Sussex than in the same month last year, according to Rightmove. According to Rightmove, Bexhill-on-Sea in East Sussex was the new supply hotspot in January, with nearly twice as many new houses coming on the market than in the same month last year.
Does 2022 mean lower house prices?
During the Covid pandemic, house prices rose because of policies like as extending the stamp duty holiday and introducing a new mortgage guarantee, as well as the ‘race for space,’ which saw more people choose for larger houses as a result of the move to working from home. Property prices may level off in 2022, but demand remains larger. When compared to the same month last year, it was recorded a 15% rise in the number of persons enquiring about homes in January.
However, the impact of rising inflation and interest rates might still have an influence, making it more costly to buy a home. The Bank of England is likely to hike interest rates again this month, after doing so for the first time in over three years in December.
Property prices are predicted to keep rising this current year which will benefit sellers but might make it a bit harder for home buyers in specific parts of the UK, specially first-time buyers that don’t have access to the first-time buyer scheme.
If you are a small time/ new property investor, deciding on when to buy a property can be a complicated decision process. Whilst we haven’t talked you Through the steps in this blog, and by the way we do have helpful articles for this, just click here. It is so beneficial to be aware of where you can find the trends and statistics regarding property.
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