UK housing market trends 2022
Deciding to move from one place to another is a life-changing decision in anybody’s life. It alters their lifestyle to a great extent,especially when moving into a huge country like the UK. Living in the UK gives a fulfilling experience to the residents. They can enjoy the calm and serene countryside, as well as the busy and vibrant streets of cities.
Real Estate in the UK has been a lucrative business for both buyers and sellers. Unlike before, it has become easier to find the best homes across the UK with the help of estate agents in Dunstable, Buckingham, Cambridge and more.
The property market in the UK has always remained a hot topic that is being discussed by millions of people regularly. This topic instills curiosity among people from the UK and overseas who wish to invest in properties here.
Predicting the property trends accurately is not possible as it keeps changing every month and in every part of the UK. Many aspects keep changing in the UK housing market.
Many factors influence the drastic changes occurring in the real estate business of the UK, out of which only some can be controlled by humans.
The balance between the demand and supply, mortgage lending factors, property prices and more have a potential impact on the estate business. It is always a good time to invest in properties in London and the UK despite the unstable market.
EXHAUSTION OF PROPERTIES
People have been moving into the UK and investing in several properties for the past decade. Many homes in London and the UK have been occupied already as the sales were at their peak in the last five years.
With little to no empty lands in many parts, new builds will take time to emerge in the main regions of the UK, due to which the existing properties are the only options left out.
Due to the continuous selling of property, very few homes are left for sale, which will soon get exhausted in no time. This will prevail for a long while, and buyer demand decreases automatically.
RECOVERY IN THE UK’S ECONOMY
Real estate in the UK is a significant contributor to the country’s economic growth. Although the estate business has been flourishing for several years, the 2019 pandemic hit hard on all people and businesses.
Real Estate had its worst slump during that phase, where the number of property sales and the demand from buyers declined steeply. The post-pandemic improvement in the economy saw a slight change in the business and has been growing rapidly since then.
This situation will further improve in 2022 as everything is back to normal, and people are ready to explore new ways of living and invest in more oversized property types based on their requirements.
OVERALL STEADY PROCESS
In a combative industry like real estate in the UK, people hurry up to place their hands on the best property deals before someone else does it. This scenario aggravated in 2020, where many people started competing for a single property in the UK.
This wouldn’t be the case in the future. The property prices will go down in the latter half of 2022 with the slowing down of property sales and demand from buyers.
This normalcy will facilitate people to bid for properties below their asking prices like previous times and have a hassle-free buying process with less to zero contention from other buyers.
CHANGE IN MORTGAGE PLANS
It is challenging to bear huge expenses by oneself when buying a property for the first time. Almost everyone depends on external sources to manage their finances. Applying for a home mortgage loan is the go-to option for anyone purchasing a home in the UK.
Lenders from across the country offer mortgage loans at varied interest rates. In 2019, they started providing exclusive schemes along with low-interest rates that pushed many buyers to make a move. However, this wouldn’t continue through 2022.
The real estate business and people have almost recovered from the pandemic and are progressing forward. Keeping this in mind, interest rates and LTV will increase to the pre-pandemic levels.
GRADUAL INCREASE IN PROPERTY PRICES
Followed by a prolonged lockdown, property owners decided to increase the prices as the asset value improved in the market. From early 2020 till date, the property prices have been wavering and reached the record high in June 2021 and are still at an affordable price currently.
This trend will continue into 2022, where prices will slowly rise to the pre-pandemic market levels. The current property market is incredibly competitive, and people are increasing the asking prices of the property. The highest bids are approved by the owner and sold to them. Till the mid-2022 this condition will continue, after which the buyer’s demand will go down.
