There were considerable sales and rental price increases in 2021, and many people want to know whether this will continue in 2022. Let’s look at what experts are predicting.
House Sale Prices in 2022
Most property sales experts predict that in 2022 house prices will continue to rise, but not at the same rate as they did in 2021. In 2021, More than half of house prices will have increased by at least £15,000, and more than 3.1 million homes increased in value by more than £45,000 [source].
This increase in house prices was mainly due to the Stamp Duty Holiday, people moving to more rural areas, low mortgage rates and very few houses coming onto the market whilst there was enormous demand.
Experts say there is very little chance of house prices falling in 2022; however, price growth will slow. Interest-rate rises can also contribute to a cooling off of the market.
Sarah Coles, a personal finance analyst said, “there are no signs of imminent house price deflation because the race for space and the welcome return of first-time buyers are continuing to breathe life into the market. We still haven’t finished the process of reassessing how and where we want to live in a post-pandemic world”.
Rental Prices in 2022
In 2021, there was an imbalance between the number of rental properties on the market and how many people were looking for rental properties. This meant that rental prices increased dramatically.
A recent survey by HomeLet Rental Index showed that the average monthly rent per property has risen to more than £1,000, which is a rise of 8.3% in 12 months [source]. This is the highest level of growth recorded in more than a decade.
Some experts warn that throughout this year and beyond, some landlords may exit the market because of higher taxation and regulations, and this will lead to more competition between renters. If this happens, this will push up rental prices in 2022 and subsequent years. This is potentially bad news for many as the cost of living is rising dramatically, with energy prices soaring as well.
If you are considering selling your home, want to buy a new one or want to find your perfect rental property, Northwood Estate Agents are here to help. We are a locally based independent family business backed by a nationwide chain of Letting and Estate Agents. As we’ve been successfully operating in the Warminster area in Sales and Lettings for almost 20 years, we know the area and community well and understand what’s important to our customers.
Speak to our team today by calling 01985 220 290 or email warminster@northwooduk.com, and one of our team members will get back to you as soon as possible.
