As we start the new year, it's time to take a look at what the property market has in store for us in 2022. Here are a few predictions, key trends, and key themes that I think we should look out for:
1. House prices will continue to rise
House prices are expected to continue to rise in 2022, albeit at a slower pace than in recent years. The main drivers of this are the continued economic recovery, low mortgage rates, and a shortage of housing supply.
2. The demand for smaller homes will increase
As more people work from home, the demand for smaller homes is expected to increase. This is because people will no longer need as much space for commuting and office work.
3. The demand for energy-efficient homes will also increase
The government is introducing a number of policies to encourage people to move to more energy-efficient homes. This is because energy-efficient homes are better for the environment and can save homeowners money on their energy bills.
4. The government will introduce new measures to help first-time buyers
The government is under pressure to do more to help first-time buyers get on the property ladder. This is because the cost of buying a home is becoming increasingly unaffordable for young people.
5. The number of new homes being built will increase
The government has set a target of building 300,000 new homes per year. This is in an attempt to address the shortage of housing supply and help to keep house prices in check.
6. The Bank of England may raise interest rates
The Bank of England has said that it may raise interest rates in the coming months. This could dampen demand for property, as it will make it more expensive to borrow money.
7. The impact of Brexit on the property market will become clearer
The full impact of Brexit on the UK property market is still unclear. However, it is possible that it could lead to a slowdown in the market, as businesses and consumers become more uncertain about the future.
8. The rise of buy-to-let investment could continue
The buy-to-let market has been growing in recent years, and this trend is expected to continue in 2022. This is because buy-to-let can be a good way to generate income and build wealth.
9. The popularity of shared ownership will increase
Shared ownership is a type of property ownership where buyers purchase a share of a property and rent the remaining share from a housing association. This can be a good way for people to get on the property ladder with a smaller deposit.
10. The use of technology in the property market will increase
Technology is increasingly being used in the property market, from online valuations to virtual viewings. This is likely to continue in 2022, as technology makes it easier and more convenient for people to buy and sell property.
Conclusion
These are just a few of the predictions, key trends, and key themes that I think we should look out for in the UK property market in 2022. It will be interesting to see how the market plays out and whether these predictions come true.
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