House Price Forecast for 2022

Tue 08 Mar 2022

Anne Butcher, Managing Director

In anticipation of January’s UK Price Index that is due to be released on the 18th of March 2022, in this article, we give our professional opinion on where we think the property market is going in 2022. At the end of the article are some upcoming dates to put in your diaries of when extremely important data will be released regarding the property market. It would be prudent to keep an eye on these figures if you are looking at selling or buying a property soon.
In December 2021, the average home in the UK cost £242,000; average house prices were up 7.4% compared to December 2020; and the average time to agree on a sale was much faster than average for the UK. As we are all aware, property prices since early 2020, when the pandemic hit, skyrocketed! According to the Nationwide Property Price Index, the average value of a home in the UK increased by 16% from early 2020 to December 2021.

This was due to a few factors amalgamating all at once:

• Backlog of buyers and sellers coming on the market all at once following the Covid-19 lockdown that closed estate agents down in the UK from March to May 2020.


• An exodus of buyers relocating from town and city centers to more rural locations due to more people working from home.


• Stamp Duty Holiday, which ended in September 2021.


• Low interest rates.

 

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Property Market Forecast

So where is the property market going? There are a few big factors causing the market to stay extremely buoyant right now: 

• There is still a huge demand for properties in and around our area in South Yorkshire. Especially in the more rural areas like Penistone, Denby Dale and on the outskirts of Barnsley and Huddersfield. 


• However, there are fewer properties coming on the market, which is keeping property prices up.


• Interest rates are still low but are predicted to be increasing soon. So buyers are looking to secure a good deal on their mortgage sooner rather than later.


 

The average predictions of 3 reliable sources (Rightmove, Savills and Oxford Economics) forecast a 1.4% rise in property prices in 2022. Things are forecast to be quietening down compared to last year and we’re yet to see the impact of increased living costs and the conflict between Russia and Ukraine. However, the ongoing war in Ukraine and soaring energy prices haven’t had much of an impact on the property market as far as we can see so far.
 

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Free Property Valuations

If you are thinking of moving home and you live in and around Penistone, Denby Dale, Barnsley and Huddersfield, please get in touch. Are you interested to see how much your property is worth so you can work out a budget for your onward property purchase? We offer free valuations and mortgage advice. Either book in a Property Valuation Appointment with our professional valuer or use our Online Property Valuation Tool.

Upcoming Property Market Reports

Here are some upcoming dates in March 2022 for the release of various Property Market Reports:

7th March 2022 at 7am - Halifax Price Index YoY to February 2022.
12th March 2022 at 12pm – BoE Interest Rate Decision (Expected to increase to 0.75% from 0.5%).
18th March 2022 at 9.30am – UK Price House Price Index for January 2022.
23rd March 2022 at 7am – Inflation rate YoY up to February 2022 (Expected to rise from 5.5% to 5.7% but may be higher due to recent rises in energy prices).

 

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Get in touch

If you would like to speak to one of our property professionals, please do not hesitate and get in touch with us. Our Estate Agents offices are located in Penistone, Denby Dale and Barnsley. We offer a friendly and personable approach to our service with no pushy sales jargon - covering areas in and around Sheffield, Huddersfield, Barnsley and Wakefield.