5 Property Market Predictions for 2022
The property market has been on a rollercoaster of highs and lows since the COVID-19 pandemic began, with record-high housing values on one hand and record-low mortgage rates on the other. For many, it's been a period of overwhelming stress and difficulty with personal finances.
We’ve put together FIVE potential predictions of what we think may happen in 2022…
1. Sales and prices will both continue to climb
In 2022, prices are likely to remain high, and mortgage rates will climb. Rightmove has predicted that the national asking price of a property, which is currently at £342,401, will rise by 5% in 2022, meaning an increase of around £17,000.
Sales are also predicted to continue to increase, thanks in part to technological advancements that have sped up the home-buying process.
2. The popularity of the suburbs is likely to continue
The countryside and suburbs became the places to be during the pandemic, as buyers could get more square footage and that much-needed outdoor space for less money than in cities.
Working from home will also continue to be a factor which encourages this, as workers no longer have to deal with long commutes five days a week.
3. Prices will stay high in desirable communities
Buyers want affordable houses with flexible space for working, learning, exercising, cooking, and all of the other living and relaxing activities that we used to take for granted. Zoopla Research recently conducted a survey of UK households which found that 22% remain ‘eager’ or ‘very eager’ to move home in the next 18 months as a direct result of the pandemic
4. Rent prices will continue to increase
Rents have been skyrocketing, and residents are unlikely to see any respite. The private rented sector is expected to rise by 4.5% nationally in 2022 according to Zoopla.
5. It won’t be easy for first-time buyers… but!
First-time buyers will likely continue to struggle to compete with over-the-asking-price offers and win bidding wars as the competition to purchase an affordable home becomes even tougher.
However, Shared Ownership can be the solution which will help you to take those first steps onto the property ladder. The Shared Ownership scheme allows buyers to purchase a share of a home, typically between 25% and 75%. Due to this, a mortgage is only required on the share you purchase – meaning that the typical deposit for Shared Ownership is much lower than when buying on the open market
Are you looking for a stylish and modern home in London or the South East?
Southern Home Ownership is dedicated to providing stylish, high quality and contemporary new homes for sale on a Shared Ownership basis.
If you're interested in owning a Shared Ownership property, then click on this link to take a look at our latest developments.