As we approach the end of February, it's time to take a look at how the property market has performed in the first two months of the year.
January
House prices rose by 0.3% in January, following a 0.4% increase in December. This is the sixth consecutive month of price growth.
The main drivers of the price growth in January were the continued economic recovery, low mortgage rates, and a shortage of housing supply.
February
House prices are expected to continue to rise in February, albeit at a slower pace than in January. This is because the market is starting to cool, as the stamp duty holiday comes to an end and the Bank of England has warned that interest rates could rise.
Key trends
Here are some of the key trends that have been observed in the UK property market in January and February 2022:
The demand for property has remained strong, particularly in the South East and London.
The supply of property has remained low, which has helped to keep prices up.
The average time it takes to sell a property has decreased.
The number of first-time buyers has increased.
The number of buy-to-let investors has increased.
Prices in London, the South East and South West
Prices in London have continued to rise in January and February, albeit at a slower pace than in previous months. The average price of a property in London is now £545,000.
Prices in the South East have also continued to rise, but at a slightly faster pace than in London. The average price of a property in the South East is now £405,000.
Prices in the South West have also risen, but at the slowest pace of the three regions. The average price of a property in the South West is now £325,000.
Volume of sales
The volume of sales has also increased in January and February. The number of properties sold in England and Wales in January was up 11% compared to January 2021.
The number of properties sold in February is expected to be similar to the number sold in January.
Conclusion
These are just a few of the key trends that have been observed in the UK property market in January and February 2022. It will be interesting to see how the market plays out in the coming months and whether these trends continue.
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