After the rollercoaster year of 2020, 2021 was a difficult year to predict in the housing sector, though here at The Agent we did manage to get it more or less spot on in last years blog post. With the return of stability to the market, we can start to look at the forecast for the new year.
More than 22% of homeowners plan to move in the next 18 months, due to direct results of the pandemic. In a recent survey, it has been revealed that those most likely to move were younger people who live in cities, suburbs or large towns, and those who have had working patterns change due to COVID-19.
According to Zoopla, the main drivers for the sector will be “an ongoing re-evaluation of housing needs, increased housing equity and moves in parts of the labour force to more hybrid working.”
The portal forecast a 3% increase in house prices across the UK in the next 12 months, which is predicted to affect around 1.2 million property transactions.
With the expected house price gains, it is likely that we are going to see more sellers coming to market in the coming months, but a continued low supply will support price inflation, all be it at a slower pace than experienced in 2021.
Housing remains affordable in many markets and competition with mortgage lenders will keep rates low, leading to a sturdy appetite in the sector for 2022. The recent small rise in interest rates could well see people deciding that now is the time to get moving prior to any further rises brought in to help curb inflation.
Zoopla has also suggested that because mortgage rates are at a record low of 0.1%, buyers are becoming accustomed to these low rates. It has been predicted that rates will reach an average of 3% by the end of 2022, giving buyers a push to act sooner rather than later to secure cheaper borrowing conditions.
If you are looking to take advantage of current property conditions, book your valuation now with your local one-to-one agent and put yourself in a great position for 2022.
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