Part 1: What will happen to the price of your property in 2022?
āWhat will happen to the price of your property in 2022?ā
A detailed market overview from avocado propertyā part one of three.
Blog Contents
Part One (this blog)
What are the impacting factors to look out for in the 2022 property market?
Part Two (the next blog)
How to get the edge as a buyer in 2022
Part Three (the blog final blog)
3.5 Tips that could get your property the asking price, if you sell at the start of 2022.
What are the impacting factors to look out for in the 2022 property market?
- The market is dictated by demand 90% of the time. Demand is influenced by the affordability to purchase. This is often in the hands of the banks (sorry but it's true). People donāt actually buy a new house because of the price, they buy based on what they can afford monthly and what a mortgage lender is happy to lend. It seems crazy to say but the price is almost completely irrelevant!
- Although the sub 1% mortgage deals are very 2021, the rates are still super low, and have not been affected by the December Bank of England base rate increase to 0.25%. Competitive banks mean cheap money, cheap money means high demand and high demand means house salesā¦
- Stock levels counter the demand for price growth for the property market. At the end of 2021 we highlighted in one of our Thursday night live partner chats, that we felt the stamp duty holiday would actually create a shortage of new homes and therefore a price hike. This happened and we saw an even bigger price increase in UK property than we had predicted! But will this happen in 2022?
- The ārace for spaceā was a phrase used by a mortgage adviser on our landlord page podcast last week. The race for space is a big factor in new buyers and new sellers. The lockdown baby boom is going to play a part in the amount of families looking for space in 2022. The other trend is home working and people are now setting up their property as a full time home working environment.
- Rent rises have an impact two-fold and not just for tenants but for people looking to buy. Why do you ask? Well as prices of rents increase it becomes much less affordable for some tenants to get the space they want or need. Plus with mortgages so cheap and with 95% mortgage loans as an option, more tenants can buy today than they could 18 months ago. So demand increases furtherā¦
- In the UK we have a void of employees for one million jobs! As shown in the news staff wages have increased massively. To work in low skilled job roles you can earn some fantastic salaries now. Inflation levels show that there is a lot of money in the economy and due to the furlough scheme, a UK labour shortage. When people earn more money, they have more to spend and when their bank accounts sit above the ānormal lineā, they are more likely to buy a bigger house. Therefore creating more demand.
These are the 6 factors to look out for in the 2022 property market.
At avocado property, we are proud to share our experience and knowledge. Our aim is to help and inform our local communities so we can help you achieve your goals to move home and make better informed decisions at the right moments.
If you would like to book a valuation with one of our partners you can do so here.
Or if you would like to register yourself into our database to get the heads up if your perfect property is coming to the market click here.