This month’s House Price Index Report, published by property portal Zoopla, takes stock of what’s happened in this record year for property sales but crucially also looks ahead to next year – specifically the outlook for sales and price growth and the economic trends that will impact buyer demand in 2022.
Here’s the Executive summary:
• 2021 a record year with sales set to exceed highs of 2007 (1.5m)
and over £473bn of new sales agreed – £95bn higher than 2020.
• No sign of any cliff edge in demand. The impact of the pandemic
on activity has further to run – albeit at a less frenetic pace.
• Further room for above average price growth in most affordable
housing markets where the current rate of growth is highest.
• The primary headwinds in 2022 will come from higher living costs
and increased mortgage rates which will impact buying power.
• UK house price growth to slow to +3% over 2022 with 1.2m sales.
• House price growth will be greatest in the North West and East
Midlands (+4%) and lowest in London (+2%).
“It is now clear that the impact of a global pandemic on the UK housing
market was not going to be short lived. We believe the impact of the
pandemic has further to run into 2022, supporting market activity and
sales volumes. The primary catalysts will be an ongoing re-evaluation
of housing needs, increased housing equity and moves in parts of the
labour force to more hybrid working. ”
To read Zoopla’s UK House Price Index in full click here.