If you, like many others, are looking to buy or sell a house after the new year, you may want to know when the best time will be. Whether you are buying or selling, here is everything you need to know for the housing market forecast for 2022.
UK Housing Prices Set to Rise by 3.5%
Hamptons has released a housing forecast for next year and beyond. As part of this forecast, it is predicted that housing price growth will continue to be above pre-pandemic levels as the cycle ends in 2024.
It’s believed that the summer of 2021 is where house price growth peaked. Probably because we were moving out of the lockdowns and slowly returning to a sense of normal. People also realised the benefits of outdoor space and so were moving into properties with larger gardens.
Moving into the winter months, it is expected that price growth will slow, ending the 2021 year at 4.5%.
Demand For Houses In 2022
A continued demand resulting from previous lockdowns will keep price growth above pre-pandemic levels at 3.5% for 2022. It has been stated that the increased desire for flexible working options between home and the office will continue to stimulate the 2022 market.
Mortgages are expected to reach their lowest point in 2022, which will aid first time buyers by making prices far more affordable.
In Q4 of 2022, house prices are set to rise by 3.5% across Great Britain, in addition to incomes. For northern regions, price growth will be strongest alongside Scotland and Wales where restraints in affordability are lower.
The strongest price growth by region is set to be the North East at 6.0%. This will then be followed by Scotland, Wales, The Humber and North West. Meanwhile, the weakest growth by region will go to London at just 1%.
2023 and 2024
Those who are considering the housing market forecast for 2022, may want to consider the predictions of the market post-2022 before making any decisions. By 2023, the North is set to drive a growth of 3% approaching the region’s end of cycle. The economic recovery following the pandemic will play a vital role in determining the medium-term outlook for the property market. Thus if interest rates increase more than expected, this will have a big effect on affordability which will in turn negatively affect price growth.
For 2024, the cycle will most likely come to an end. However, prices across regions are expected to be more widely spread than ever before.
House price cycles generally last around 16 years, starting normally with price growth in London. Following this usually comes a narrowing of price gaps between London and other regions of Great Britain.
Between Q4 of 2023 and Q4 of 2024, London house prices are set to rise from 1.5% to 3%.
However, this being said, it is believed that the gap between London and the rest of the country is set to remain wider than at the end of previous cycles. It is estimated that the average prices of houses in London will cost 87% more than the national average.
So When is the Best Time to Buy and Sell a House?
Traditionally, springtime around March can usually serve as the best time to buy a house as there are more homes on the market. Part of the reason for this is that people are often keen to get houses sold before everyone heads off on the summer holiday. The worst time to sell a property tends to be around August and December.
Buying and listing opportunities pick up between the months of September and October but drop off towards the end of the year as most homeowners tend to stay in their current properties around the Christmas period.
However, with the current housing climate should you buy a house now or wait until 2022? Truthfully, although there are predictions for a small drop in house prices for 2022, nothing is certain. If you are able to afford a house now, it may be a good idea to buy it rather than waiting on unconfirmed predictions.
If you’d like free-market advice or need an instant property valuation you can trust, get in touch with the team at Seymours.