How Are The Housing Market Trends Currently In UK?

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The sudden rise in property prices, a change in buyer demand and the concept of work from home were the three major changes in the UK economy in 2021. In 2022, estate agents in Doncaster believe that the prices of property might continue to rise, but the economy and the housing market will start to stabilize. With various factors at play, the UK housing market will certainly see a change in trends and buyer behaviour. 

 

But, before we start talking about the future, let’s talk about how the past few months will play a vital role in shaping the future of the UK housing market in 2022. The last few years in the UK housing market have been rather dynamic, to say the least. When the Covid-19 pandemic first hit the UK economy in 2020, the UK real estate market came to a complete standstill. In order to boost the UK housing market, and the economy as a whole, the UK government announced the stamp duty holiday, which was a temporary suspension of the stamp duty tax. The stamp duty holiday was an immediate success, with real estate activity increasing in volume in just a few short months. 

 

Even once the stamp duty holiday came to an end, real estate activity in the UK housing market continued to rise, which led to a massive spike in property prices. From January 2021 to January 2022, the average price of property rose by a whopping 10 per cent. That is right, a massive 10 per cent increase in a mere 12 months. Of course, this spike in property prices was caused by a variety of factors including the rising rate of inflation, the imbalance between demand and supply and the changes in buyer demand. So, what are the housing market trends for the UK in 2022?

 

The race for space will continue

 

The Covid-19 pandemic gave birth to the race for space. As people were forced to stay indoors and the concept of working from home became very popular, homeowners and renters were looking to move into bigger homes and spacious properties. Now, even though offices have opened and the Covid-19 era is almost behind us, the race for space is still on the rise. Homeowners are looking to sell their current homes to move into bigger properties. Potential buyers and new renters are looking for properties with spare rooms or additional space which can be converted into home offices. In fact, the most common demand among potential buyers and renters is outdoor space. People are looking to move into homes with private gardens, rooftop terraces as well as spacious balconies. Most experts believe that the race for space will continue, thus becoming one of the most prominent trends in the UK housing market in 2022.

 

Higher emphasis on sustainable housing

 

As the awareness around sustainable living has increased, so had the demand for sustainable housing. New buyers, homeowners and even renters are looking to move into energy-efficient homes and apartments as sustainable housing is the future. Sustainability has become a big issue, not only for potential buyers, but for the UK government as a whole. There will be pressure on developers and homeowners to meet certain environmental standards and to use energy-efficient systems in their homes and buildings. For instance, as per the new MEES regulation that is to be introduced in 2023, buildings that have an energy-efficient rating that is lower than E will not be allowed to be given out on lease. Also, energy-efficient homes have become a popular demand among new buyers and renters, as energy-efficient homes have lower utility bills. Solar panels, roof and window insulation, smart thermostats, energy-efficient appliances and LED lights are some ways that homeowners and investors can make their properties sustainable and energy-efficient. Those investors and builders who manage to incorporate sustainable housing and sustainable living in their properties will create profitable properties in the future. 

 

Buying will triumph over renting

 

At the beginning of 2022, it was cheaper to buy a property as opposed to renting one. In January 202, the average price of renting a property was £1,064 per month where as the average monthly mortgage payment was £700 in the UK. In London, the average rent per month had reached a whopping £1,760. Despite the massive rise in property prices, it is the imbalance between the demand and supply in the housing market coupled with the rising rate of inflation that has led to this massive disparity between buying and renting. Seeing how the property market in the UK is on the rise, many renters will soon prefer to buy a home as opposed to renting one. Also, the UK government has introduced various schemes to help first-time buyers climb the property ladder. This will encourage more young individuals to invest in property instead of just looking at rental property.

 

Property prices will stabilise

 

According to the experts, the 2022 housing market in the UK will be closer to normal market. That means the pace at which property prices have been rising in the UK will slow down by the last few months of 2022. Also, there has been a significant jump in the number of homeowners and investors who are looking to get their properties evaluated. That means the UK housing market will see an influx of new properties which will certainly help reduce the imbalance between demand and supply. As the disparity between the demand and supply will reduce, the property prices will also stop rising as quickly. In 2021, the housing truncations in the UK reached a whopping 1.5 million. Experts at Zoopla predict that the housing transactions in the UK will decline by 20 per cent in 2022, thus reaching 1.2 million in 2022. This number is relatively in line with the average housing transactions in the UK in the past, though it is still higher compared to the last 10 years. In essence, experts believe that the house price growth in the UK will reach 3 per cent by the last quarter of 2022, which is relatively normal compared to last year’s figures.