Posted 04th January 2022 by sdlt-admin
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Property: ‘Uncertainties’ heading in 2022 – ‘lack of stock’ driving up house prices
“The housing market has seen a turbulent year after it struggled in the midst of the pandemic last year. With many Britons deciding they want more space and many leaving cities, demand for housing has skyrocketed. This has also pushed up property prices, with potential homeowners having to pay more money for their dream home.
David Hannah, principal consultant at Cornerstone Tax, discussed the outlook of the 2022 rural and city property market.
He explained: “There are still many uncertainties in the UK housing market as we head into 2022. One of the predominant problems being the current supply within the UK housing market, rural properties in the sub-two and a half million bracket are in very, very short supply.
“Indeed, houses in the £200,000 to £750,000 bracket in or on the edge of villages in the countryside are all being sold.
“This has caused estate agents to complain about the lack of stock.”
According to the expert, there is still shortage of building materials which has caused delays in the industry.
New housing developments, particularly those outside of cities, are already being sold off plan.
Some developments are selling homes with completion dates as late as May 2022, showing there is a huge demand for housing right now.
The expert continued: “This shows a sign of that increased, and I think, persistent tendency to want a property with gardens near open spaces and countryside.
“Demand for inner-city apartments has started to increase. Interestingly that may not be a post-pandemic effect, but rather a geo-economic effect.The tendency to work from home or work from anywhere appears to be persistent.”
The average UK house price also rose above the £270,000 price mark for the first time in 2021.
This was due to there being such a demand for properties but a lack of homes on the market.
David explained: “The imbalance between supply and demand has, inevitably, raised the average UK house price.
“We saw a 0.9 increase in November, taking the average UK house price, which now stands at £272,992, to a new high.”