Housing market outlook: What to expect in 2022
This year has been one of the busiest for the housing market in more than a decade.
Zoopla’s estimates show that there will be 1.5 million sales this year, with the total value of homes changing hands at £473bn, some £95bn higher than in 2020.
The trends driving the market have been well discussed – a ‘reassessment of home’ prompted by the pandemic, a ‘search for space’, low mortgage rates, better access to mortgages for first-time buyers, and, of course, the stamp duty holiday.
The passing of the final stamp duty holiday deadline on September 30th in England means there are no more purchase tax savings on offer across the UK. The resulting impact on demand gives us the first indication of what will happen in the market next year.
Zoopla Research recently conducted a nationally representative 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. As offices confirm their new working practices, more households will be reflecting on their options to move home.
Another factor which may increase consideration around moving is the increased housing equity among homeowners – the average value of a home has risen by nearly £50,000 over the last five years. In one in seven local authorities across the UK, 2/3rds of homes have risen by more than the average, giving households more scope to make their next move.
Home buyers have become used to low mortgage rates which have ranged between 2% and 3% since 2015, hitting a low of 2.1% in H2 2020.
OneAgency offer free valuations covering the whole of Stoke-on-Trent, Staffordshire and Cheshire. We can give expert advice whether buying, selling or looking to let a property. Get in touch today on 01782 970 222.