In 2022, UK house prices are predicted to surge by 5%, Rightmove has found. They attributed this to the available stock of property for sale hitting the lowest level per estate agency branch that they have ever recorded.
Guy Robinson, head of residential agency at agent Strutt & Parker said: “Following the highest house price growth in seven years, the outlook remains positive for 2022. Buyer demand continues to be robust and applicant numbers are still significantly higher per property than any time since 2006.”
Current House Price Statistics
The average UK house price in 2021 is now £272,992. This is compared to an average house price of £252,235 a year ago – a staggering rise of £20,757 in just a year. This means that the annual house price growth is currently at 8.2%, peaking at 9.5% in May 2021. This was the strongest rate of annual growth in average house prices since July 2014.
Inflation is rising, so it’s more than likely that interest rates will also rise further in 2022. Last year’s Government support measures for COVID-19 have largely stopped, so this will put greater pressure on household budgets. Managing Director at Halifax, Russell Galley, believes that “house price growth will slow considerably” as a result.
Galley continued: “Interest rates will remain low by historic standards and property prices will continue to be supported by the limited supply of available properties.”
“We expect, therefore, that house prices will maintain their current strong levels but that growth will be broadly flat during 2022 … there is still a large degree of uncertainty around this forecast, particularly the extent to which savings accrued during the pandemic continue to boost housing transactions and prices, and how lasting the recent shifts in housing preferences prove to be.”
“Indeed, it is prudent to highlight the potential for house prices to rise or fall by much greater margins next year, depending on how COVID-19 and its variants continue to impact the economic environment and the potential for any further policy interventions.”
House Prices Across London
The trend continues in London of a rise in average house prices.
Hampstead
According to Zoopla, the average price for property in Hampstead was £1,581,292 in December 2021. This is a rise of 1.57% since September 2021, and a rise of 1.17% since December 2020.
St. John’s Wood
The average price for property in St John’s Wood came in at £1,507,699 in December 2021, Zoopla found. This is a rise of 1.76% in the last three months and rise of 2.00% since December 2020. Breaking this down into property types, flats in St John’s Wood sold for an average of £1,047,866 and terraced houses for £3,049,177.
The Trend for 2022
It’s predicted that the average house prices in the UK will continue to rise in 2022, but at a less drastic rate than in 2021. The rises are anticipated to be consistent across the UK, but regional and local factors will still influence the house prices. It probably goes without saying, but COVID-19 will continue to play a significant role on the economy as a whole, and on house prices.