UK house prices in 2022: what the experts think
Sellers’ market, what next and mortgage matters
1. Sellers’ market
Nearly a third of homes in England and Wales sold for more than their asking price in 2021 – “twice the average over the previous decade”, said James Pickford in the FT. It’s a measure of the strength of the “sellers’ market” during the pandemic, and the impact of stock shortages. “Lockdowns, low mortgage rates and the added incentive of a stamp-duty holiday” all contributed – as did the drive for properties better suited to home-working.
Andrew Marshall, head of sales at Hamptons’ western region, reports that “competition among buyers” was “more intense than at any time in his 20-year-plus career”, with “homes of the right kind” selling “quicker than in any year on record”. By contrast, the speed of sales in London (where house-price growth was the slowest of any UK region, at 4.2%) decelerated to “a six-year low”.
2. What next?
“Given that many people brought forward purchases to benefit from the stamp-duty holiday”, price growth is expected to slow in 2022, said Investors’ Chronicle. “The prospect of interest-rate rises could also cool the market, as could affordability concerns,” noted Nationwide’s chief economist, Robert Gardner.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
![https://cdn.mos.cms.futurecdn.net/flexiimages/jacafc5zvs1692883516.jpg](https://cdn.mos.cms.futurecdn.net/flexiimages/jacafc5zvs1692883516-320-80.jpg)
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
House price growth continues to outstrip wage inflation: a 20% deposit for a first-time buyer in London now costs £88,000, or 183% of average gross income – compared with 130% ten years ago. Still, a slowdown is by no means a certainty. “The strength of the market surprised in 2021 and could do so again,” said Gardner. “The market still has significant momentum” and “shifts in housing preferences” could keep it going.
3. Mortgage matters
Lenders are already raising prices, said Rachel Mortimer in The Sunday Telegraph. They withdrew “super-cheap deals en masse” ahead of an expected interest-rate rise from the Bank of England in November (which actually materialised in December). Although rates increased from a record low of 0.1% to just 0.25%, “sub-1%” mortgage deals “have all but disappeared”. “There are still some good deals to be had,” said analyst Katie Brain of Defaqto. But you’ll need to be quick. Nationwide, Britain’s biggest lender, is “increasing rates on some of its deals by three times the rise in Bank rate”.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Create an account with the same email registered to your subscription to unlock access.
-
Red Speedo: a 'darkly comic' doping drama
The Week Recommends Lucas Hnath's play stars Finn Cole as a 'reptilian' swimmer determined to win at all costs
By Irenie Forshaw, The Week UK Published
-
One Aldwych: where London's creative spirit takes centre stage
The Week Recommends This five-star Covent Garden hotel is the epitome of elegant independence
By Julia O'Driscoll, The Week UK Published
-
Charlotte Dujardin and equestrianism's dark side
In the Spotlight Olympic gold medallist and dressage star's suspension over horse whipping brings abuse in horse sports back into the spotlight
By Harriet Marsden, The Week UK Published
-
6 coastal homes in Cape Cod
Feature Featuring a wall of glass in Mashpee and an undulating roofline in Wellfleet
By The Week Staff Published
-
Peng Shepherd's 6 favorite works with themes of magical realism
Feature The author recommends works by Susanna Clarke, George Saunders, and more
By The Week US Published
-
Francis Alÿs: Ricochets – a 'heart-stopping' exhibition at London's Barbican
The Week Recommends 'Mesmerising' films of children at play around the world from Kharkiv to Mosul
By The Week UK Published
-
Mishal Husain: BBC journalist shares her six favourite books
The Week Recommends Newsreader and Radio 4 presenter picks works by Louisa May Alcott, Jamil Ahmad and more
By The Week UK Published
-
Eno: 'stimulating and cerebral' documentary that's never the same twice
The Week Recommends A 'fascinating' look at the mercurial British musician and activist Brian Eno
By The Week UK Published
-
Longlegs: 'nerve-jangling and devilishly bleak' horror film
The Week Recommends Nicolas Cage gives perhaps the most 'terrifying' performance of his career as the titular serial killer
By The Week UK Published
-
The CIA by Hugh Wilford: 'lively and original' history of America's spy agency
The Week Recommends The book has been dubbed a 'must-read' for those interested in intelligence and national-security affairs
By The Week UK Published
-
Laura van den Berg's 6 favorite books with hidden secrets
Feature The author recommends works by Patricia Lockwood, Gillian Flynn, and more
By The Week US Published