According to early indications, the UK is on track to enjoy its strongest year of house price growth since 2007, and the trend does not appear to be reversing as we head into 2022.
Zoopla, one of the most popular property portals in the UK, predicts that house price increase will continue into 2022, with a forecast of 3% growth next year and 2% growth in London.
It’s the same old property storey: there’s a huge gap between the amount of sellers and buyers in the market right now. This is causing the housing market to perform 30% better than the five-year norm, with activity expected to exceed £473 billion this year, up £95 billion from the previous year.
While wages are increasing, they will never be able to keep up with an already inflated market, hence the savvy home movers will be those that relocate as soon as possible.
The most recent Stamp Duty Holiday expired in September, resulting in a significant increase in net loans according to Rose Capital Partners. While the deadline played a role, we’ve also seen a big surge in consumers remortgaging to lock in long-term fixed rates since the widely expected hike in interest rates appears to be coming before the end of the year or early in 2022.
While the market is currently being propelled by a double push factor of rising mortgage rates and rising home prices, mortgage brokers are expected to remain busy right up to Santa’s visit, with activity heating up again in January in the same vein.
Rose Capital Partners reported a continued high demand from clients seeking guidance on their choices during this period of mortgage market volatility. Homebuyers and people remortgaging have been reassured that their default position remains secure according to the company.