Will property prices in the United Kingdom fall in 2022?
HOUSE PRICES REACHED AN ALL-TIME HIGH IN JUNE, 30 PERCENT ABOVE THE HIGHEST POINT EVER REACHED.
According to property database Zoopla, house prices in the UK soared to a new high in June. According to the site, the average house price was up 5.4 percent from the same month a year ago. Since January 2021, supply has failed to keep up with demand, with no signs of a rebalance on the horizon. Is this, however, a sign that housing prices will fall in 2022?
According to property website Zoopla, rising demand for homes will extend well beyond 2022.
Following the coronavirus pandemic’s lockdowns, buyers are looking for greater space in their homes.
In response to this need for room, typical house prices have increased by 7.3 percent in the last year, reaching a new high of £230,700.
Houses, in particular, are in higher demand, whereas flats are less appealing to buyers.
According to Zoopla, all property types are in low supply, which is causing prices to climb.
“Demand for houses is twice as high as usual at this time of year between 2017 and 2019, racing away from demand for flats, resulting in a discrepancy in average price rise between the two property types,” according to Zoopla.
“House prices are being sustained in part by a severe shortage of properties for sale, with supply levels down almost 25% in the first half of the year compared to 2020,” according to the property website. While house prices are rising, flat prices are lagging behind at 1.4 percent.
The prolongation of the stamp duty vacation had the greatest influence on the housing market in the previous year.
It was supposed to expire in March 2021, but it will now go until October, with each month beginning in June and ending in September.
The stamp duty holiday has flooded the housing market with fresh buyers looking for homes before the tax reduction expires.
Interest rates have stayed low as well, with the Bank of England encouraging people to borrow during the outbreak.
Although rates are beginning to rise, they are still much below pre-pandemic levels.
Forecasts for 2022 are tough to anticipate at this time, and many real estate professionals are split on their predictions.
No one, on the other hand, anticipates a large turnout. “Brinkwire News in Condensed Form.”