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Will house prices go up or down next year? Experts all say the same thing


12-21-2021

A man is seen looking at houses for sale at an estate agents


Will house prices go up or down next year? Experts all say the same thing

 

 

 

 

 

 

There's only one direction for house prices, experts say (Image: Getty Images)


Property values have soared in 2021, hitting record highs, and now experts say the value of housing is almost definitely going up next year too, but at a lower rate

By Sam Barker Personal Finance Reporter

The average UK house price has risen an astonishing 10.6 percent in the year to August, according to the latest figures - but what will happen in 2022?

The typical UK house is now worth 264,244, HM Land Registry has said, with the north east of England seeing the highest rise in value - 13.3 percent.


No region of the UK saw a rise of less than 7.5 percent, in what has been a record-breaking year for property values.

And that is according to government figures, which are lower than rival figures.

Building society Nationwide also tracks house prices, and it thinks the average house broke through the 250,000 mark in November for the first time on record (250,311).

The reasons for the boom in house prices include very low mortgage rates and a stamp duty holiday earlier in the year that led to deals being rushed through.


What will house prices do in 2022?


No-one in the history of property can perfectly predict what house prices will do, but experts agree that 2022 should see prices keep rising, just at a lower rate.

Estate agent Savills said house prices would rise by 3.5 percent next year, 3 percent in 2023 and 2.5 percent in 2024.

It thinks house prices could increase by 13.1 percent by 2026 - the same rate of growth seen in the UK in the past 16 months.

Zoopla, the online property firm, thinks house prices will rise by 3 percent next year.

House prices have risen by 1,691 a month since lockdown began in March 2020undefined

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Property sales website Rightmove thinks values will increase by around 5 percent in 2022.

This is because the firm is still seeing a huge number of home-hunters looking to move, and not enough homes available to buy, so the imbalance continues to push prices up.

Rightmove director of property data Tim Bannister said: "With a jump in the number of owners requesting valuations from agents with a view to marketing their homes, it looks like many of this group are now gearing up to make it a new year resolution to move, so more buyer choice could now be on the cards."

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House prices could rise even more if the Bank of England relaxes its current tough rules on letting borrowers get mortgages.
At the moment, anyone getting a mortgage has to prove to the lender that they can still afford to pay off the loan if the interest rate goes up.

To prove that, they have to show they could pay a 'reversion rate' - normally 3 percent higher than a mortgage lender's standard variable rate.

The idea is that it protects consumers.


If would-be homeowners cannot afford the reversion rate they face falling behind on mortgage payments if rates rise - and possibly losing their house to the bank.

But this tough test makes it hard for many people to get on the housing ladder.

Now, the Bank of England is considering relaxing the rule.

This would allow people to get mortgages more easily - but experts say it could also mean house prices go up.

www.mirror.co.uk/

 

 

 

 

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