Housing market predictions 2022:
Posted on 31st January 2022
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In normal times, the end of the year marks the slowing down of the property market, but for 2021 this was far from the case. After the obvious frenzy of property transactions around the Stamp Duty holiday, with potential savings of up to £15,000 on a £500,000 property encouraging more people to rush to buy before the deadline brought things back to normal in October 2021, many experts thought that the market would slow right down. However, the weeks leading up to Christmas saw continuing high levels of property transactions.
Here, our conveyancing solicitors in Preston discuss the predicted trends for the property market as we enter 2022, and how to navigate the changing property market this year.
What does the housing market have in store in 2022?
One positive development that is set to take place in 2022, is a greater availability of properties in comparison to 2021. The discrepancy between supply and demand of properties in 2021 was one of the biggest problems of the year for potential buyers, but Rightmove reported an increase of 19% for property valuation requests by Estate Agents. However, our conveyancing solicitors in Preston share in the concerns that this will not be enough to meet demand, meaning that prices might continue to rise.
While set to rise, it does appear that the rate of rise will slow down. In 2021, there was an annual price rise of 10.2%, but property experts are predicting that prices will rise by a further 5% in 2022, increasing the national average asking price by around £17,000.
Despite these price increases, and the removal of the stamp duty holiday meaning even deeper pockets will be needed for many to buy their next property, our conveyancing solicitors in Preston can report that it is thought there will still be plenty of eligible buyers on the market. This is partially due to the savings that many made throughout the pandemic, whether it be commuting costs, cancelled holidays, or simply staying in more. This has left many with a higher level of disposable income that they would have in normal times.
Why are house prices rising so much?
The annual increase of house priced in 2021, at 10% in the space of 12 months, according to figures from the Office for National Statistics, is far from normal. While many experts have offered elaborate explanations for this, our conveyancing solicitors in Preston are here to let you know that the rise in house prices is largely due to a simple supply and demand imbalance, as well as the added impact of the stamp duty holiday pushing more to buy now rather than later. According to Halifax, our conveyancing solicitors in Preston can reveal that the North West was the strongest performing region with annual growth, where the most significant increase in house prices was felt.
Will house prices fall in 2022 UK?
There are a number of reports from experts who believe that the property market will cool off throughout 2022, in the absence of schemes like the Stamp Duty holiday, as well as rising interest rates, but our conveyancing solicitors in Preston can reveal that the general consensus shows no significant drop in house prices for 2022. As previously mentioned, there does not appear to be a shortage of buyers with the necessary funds, and it does not look like the increase in properties going on the market in January of 2022 will match the demand out there.
Is now a good time to buy a house UK?
Traditionally, Spring is the best time to buy a house, with there being up to 10% more properties on the market at this time. So, as we enter in 2022 and approach the spring months, you might be wondering ‘is now a good time to buy a house?’, ‘should I wait before buying a house?’, or even ‘is it worth it to buy a house? Well, our conveyancing solicitors in Preston are here to help.
With rapid increases in property prices throughout 2021, many people, including property experts, spoke in the second half of the year of the possibility of holding out on buying a house, and waiting for a possible drop in house prices as the market stabilised in 2022. However, as our conveyancing solicitors in Preston have mentioned, it is not looking like this is going to happen. With most predictions setting the average property price to rise by around 5% in 2022, while not as rapid of an increase as 2021, it doesn’t look promising for a significant drop in house prices any time soon.
Our conveyancing solicitors in Preston would say that this means, if you are looking to buy a house in the next 12 months, and are wondering whether to do so now or to wait and see what happens to the market, you might be best just going for it now, and not waiting for a drop in prices that never comes.
Find the right conveyancing solicitor for your property sale or purchase:
While many potential buyers can get caught up in the excitement of looking for a new house, it is important to remember everything that goes into buying a house, and be prepared for the entire process. One of the most important aspects of this is finding a reliable conveyancing solicitor to guide you through the process, and handle the legal side of things, so you can organise the move itself.
Here at MG Legal, our specialist conveyancing solicitors in Preston are on hand to assist you with the process of buying your property. Working with our expert team will ensure that everything is done properly and in accordance with legal requirements, and is the best way to prevent delays or problems throughout your property purchase.
Our conveyancing solicitors in Preston are full of expert knowledge on the local area, and happy for our clients to come and see us in one of our office locations, but we also specialise in online conveyancing, meaning that you can work with us from anywhere across England and Wales, from the comfort of your own home, while have regular contact with your conveyancing solicitor in Preston over email, over the phone, or by video call, whichever works best for you.
Our team of conveyancing solicitors are known for our honest, friendly, and reliable approach, and we believe in speaking to our clients like real people in a simple and easy to understand way, rather than the legal jargon associated with many more traditional conveyancing solicitors. When you work with MG Legal, if you have any questions for your designated conveyancing solicitor throughout the conveyancing process, they will be ready and available to answer any questions or queries that you have, right away.
If you would like to speak to a specialist conveyancing solicitor in Preston today, and learn more about how we can help with your property purchase, simply contact us online today here, and speak to a conveyancing solicitor within one working hour. Our team always go above and beyond to cater to our clients needs, and offer a tailored service to each one, depending on what works best for them and their schedule. Our conveyancing solicitors in Preston offer all of our services at a clear, fixed-fee rate, and you will never have to worry about any hidden fees or extra costs throughout the process. You can see a full collection of our properly conveyancing fees, here.
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