Mid-year review of the current UK property market in 2022

Summer 2022 London’s Current Property Market:

London’s Property market has faced various fluctuations since 2020 like all sectors. 2020 was very slow and challenging. In 2021, the property market began to pick back up with constantly soaring house prices. In 2022, house prices remain high, and the market is very much a sellers’ market. We have investigated the facts and have summarised what we think might be in store for the rest of 2022.

How did the UK property market become a seller’s market?

To keep things basic, buyers began buying properties quicker than sellers were putting them on to the market to be sold. This has caused a shortage of property stock resulting in prices rising both in London and the rest of England.

In March 2021, the average house price for England was £274,615 in comparison to March 2022 where it was £297,524. For London the average house price is now £664,000. The time taken to sell a property has also reduced. In March 2021, the average was 45 days compared to 33 days in March 2022 for England. (Sources: UK house index and Rightmove) showing the market has recently resumed its growth, although, the future is less certain with increasing utility rates and interest.

Increasing Buyer Demand:

Factors such as the end of lockdown, the re-opening of borders and travel with appropriate financing conditions, has led to the normalisation of market conditions in the current year.

In turn, with the end of lockdowns, consumer confidence has also increased. With lockdown giving some homeowners a chance to home renovate and increase the selling potential of their homes.

Increasing prices of properties:

The effect of Soaring inflation, energy prices rises, and exceeding interest rates could yet prove influential and make it more expensive to buy a house. Although, the increased costs could mean buyers have less confidence to buy due to fears of faster inflation and interest rates.

The demand of purchasing houses is getting higher day by day. The factors that are causing increase in demand of new houses are increased population, property next to the green spaces and spending more time at home.

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