2021 is expected to be a record year for sales with 1.5m transactions taking place. But what can we expect for 2022? Our HPI forecast reveals all.
Key takeaways
An estimated 1.5 million homes are expected to change hands in 2021, making it the busiest year for the housing market since 2007
22% of people currently want to move, significantly higher than the usual 5% in a normal market
Annual house price growth was 6.6% at the end of September but is expected to slow to 3% in 2022
The end of the stamp duty holiday has failed to dampen demand from potential buyers, which is up 30% on the five-year average.
Thanks to the tapering-off period at the end of the holiday, the anticipated ‘cliff edge’ is nowhere to be seen and the pandemic-induced boom still has further to run.
An estimated 1.5 million homes are expected to change hands in 2021, beating 2007’s previous record, according to our latest House Price Index report.
The combination of a nation re-evaluating what they want from a home, low mortgage rates and the stamp duty holiday have all driven unprecedented levels of demand.
Homes collectively worth £473 billion will be sold this year, that’s up £95 billion on the number of offers accepted in 2020.
However, the level of activity is expected to slow next year as the market faces a number of headwinds.
What could this mean for you?
First-time buyers
The market remains fast-moving and is not expected to start slowing down until well into 2022.
As a result, you’ll need to be prepared to move quickly if you see somewhere you like. It’s a good idea to have a mortgage offer agreed in principle before you start house hunting.
With many potential buyers looking for more space, particularly a garden, you may find you have more choice and less pressure if you opt for a flat.
Home-movers
If you’re thinking of moving, it remains a great time to put your home on the market as demand from potential buyers is continuing to outstrip supply.
Unfortunately, these same dynamics may make it challenging to find your next home.
Do as much research as you can before listing your current property and talk to local estate agents to find out how fast the market is moving in your area. We can help with this. Simply call 01642 506 800..
