January 31st, 2020 – COVID 19 was detected in the UK. November 27th, 2021 – Omicron is found in the UK. How has the UK property market responded and how are things looking in 2022? If you’re looking to invest or move to the UK, the answer will be important to you.
2020 – A Year of Resilience
Despite the excruciating circumstances, the property market performed extraordinarily well. Why? There are two reasons for this.
- The UNLOCKED DEMAND for property after the UK’s first lockdown in March, 2020 came to an end.
- The STAMP DUTY HOLIDAY that began in July, 2020 and lasted for a whole year.
2021 – Average UK House Price
Despite starting off with a lockdown, 2021 carried the housing boom torch even farther, coasting on the stamp duty cuts from the previous year and the historically low interest rates. It has been the busiest year in UK property since 2008’s financial crisis.
Here are the details:
- UK Property prices in 2021 rose by 10.2%
- 1.5 million house purchases have taken place since January, 47% more than 2020
- Homebuyers borrowed around £316billion worth of mortgages, 30% up from 2020
2022 – Things to Consider when buying a new house
At the moment, uncertainty is high due to Omicron and unprecedented UK house price levels, but whether you are looking for a new home or considering a new investment in the UK, think of the following to guide your purchases in 2022:
- The UK Low Housing Supply – It’s important to remember that while demand has been surging, property supply has not kept up, which partially accounts for these inflated the UK housing prices.
- Change in Interest Rates – A possible interest rate hike might be on the cards for 2022, which would only make it more expensive to borrow money.
- Rising Mortgage Unaffordability – Rising petrol and electricity bills have tightened many budgets.
2020 – UK Property Marketing Forecast
In face of high uncertainty, most experts across the industry expect:
- A “closer to normal” housing market
- Housing prices to cool, but keep rising by 5% at the national level\
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