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House price predictions for 2022

Christina Hoghton
Written By:
Christina Hoghton
Posted:
Updated:
08/12/2021

One national estate agency forecasts price rises across the UK, with country homes increasing in value up to five per cent next year

House prices are predicted to increase by 3% in 2022, and up to 5% in higher value country homes markets, according to Jackson-Stopps.

The estate agent said its prediction is based on the assumption that interest rates rise marginally next year, and Stamp Duty Land Tax remains at the same rate.

It added that the effects of the pandemic on the housing market will continue to be an underlying factor throughout 2022.

Property chains to become shorter

Over half (58%) of Jackson-Stops’ branches predict chains will become shorter in 2022, due to a higher volume of cash buyers in circulation and an influx of purchasers returning to the sales market from rented homes.

This will be particularly prominent in the South West of England.

Demand will continue to outstrip supply in the first quarter of next year but then fresh sellers are set to list their homes later in the year, which will help with the imbalance between supply and demand.

Nick Leeming, chairman of Jackson-Stops, said: “Lack of supply governed the 2021 housing market, with our latest data revealing that nationally there are currently 19 buyers for every newly listed home.

“These strong market conditions caused some sellers to delay listing their property for sale until they felt confident that they would find a suitable next home. An increase in new listings, fuelled by homeowners realising the extent to which their properties have risen in value over the last two years, will convince these previously cautious vendors that there are viable onward properties. We should therefore see a steady flow of new stock coming to market by the second half of the year.”

Country homes market boom

A reassessment of property requirements will continue to fuel the country homes market throughout 2022, said Jackson-Stopps, with prices set to rise by 5% across higher value price bands.

Flexible living spaces will be key next year, with house hunters chasing properties with ancillary buildings rather than multiple bedrooms. These outbuildings will be in high demand as buyers seek to convert the space into work areas, gyms, hobby rooms or a source of additional income.

Leeming added: “Complex and ongoing changes to the nation’s working patterns and lifestyle aspirations will continue to fuel the country homes market in 2022. Buying a home is a long-term commitment and with lockdowns still fresh in people’s minds, house hunters are looking for properties which are more flexible, spacious and rural than where they lived pre-pandemic.

“Nearly a third (30%) of Jackson-Stops branches reported an increase in buyers requesting homes with easy access to open countryside with scenic walking routes.”

Jonathan Weeks, director of Jackson-Stops’ Norwich branch, agreed: “With the work from home trend here to stay, house hunters no longer have the same ties to large cities. The countryside continues to offer excellent value and a lifestyle that many have wanted but had been unable to enjoy whilst previously chained to their city-based desks.”

Better broadband

Nearly every Jackson-Stops branch (91%), from the North West through to the West Country, agrees that home offices and fast broadband connectivity will continue to be at the top of house hunters’ wish lists next year.

Many noted that buyers want these working facilities to be located outside the main house in outbuildings or a garden office.