Controversial 2022 property predictions
It was almost impossible to forecast how the property market would perform during the last 19 months and even the most precise crystal ball has been proven wrong of late. Property predictions, however, are a traditional end-of-year activity and even if they’re often wide of the mark, it’s always eye-opening to look back 12 months to see how right – or wrong – we were.
Despite an economic and health landscape that is changing on a minute-by-minute basis, Viewber spoke to some of the property industry’s active practitioners to gauge their thoughts on 2022. Recurrent themes point to the impact of interest rate rises, a balancing of supply and demand, and a return to a seasonally-driven sales market. But who knows? If you strongly agree – or disagree – with any of these predictions, we’d love to hear from you. Let us know what you think will happen in 2022.
James Hyman, Head of Residential at Cluttons
“What is in store for the London sales market in 2022? In the first quarter, we expect demand to continue to outstrip supply but as the year unfolds, further potential interest rate increases and continued inflation could bring an element of distress to the market. This distress will bring more supply, outstripping demand, which will result in a fall in capital values through to 2023 – we could see prices drop as much as 10% depending on the geography. However, a fall in capital values won’t see a market crash as it will lead to volume in the market – something London has not seen since 2014.”
Kevin Shaw, National MD Sales & Michael Cook, National MD Lettings, Leaders Romans Group
“We’ll likely see a rise in rent prices in 2022, primarily because of a supply gap – some landlords will choose to sell their property in a very good sales market. We predict that there will be a 3% rise in rent across the country and that could even reach up to 5-10% in some high-growth areas. The landscape will be much the same for house prices, with buyer demand pushing prices to a record high. In 2022, we expect to see a price growth of around 3% for house sales. We also expect the Northwest, Midlands, East Anglia and Essex to see higher than average growth for rent and house prices in 2022, and we feel deposit replacement schemes will become the standard in lettings in 2022.”
Melissa Lines, Branch Manager & Specialist Valuer at George F. White
“In 2022, properties in high demand will be those with outside space, close to good transport links for possible commuting, good internet and phone signal coverage, and properties that offer flexibility – working from home space is the number one requirement when buying a property now and still will be in 2022. There’s also the strong possibility that interest rates may rise further, so people are advised to buy now to get a good deal on their next home. In general, I think property prices will see more modest price increases in 2022 as the market stabilises. The current shortage in property is, however, ensuring that prices are still exceeding guide values in a lot of cases. As more stock comes to the market this will ease a little.”
David Jabbari, CEO of Muve
“Sales demand for homes is running almost 30% higher than the 5-year average, and it looks like this will continue unless there is a very significant worsening of the economy in Q1 2022. Transaction volumes will move back to more normal levels, around 1.2m transactions per year, so there will be an excellent opportunity for the supply of properties for sale to rebuild gradually in 2022. Given the current imbalance between demand and supply, it may not be until Q2 2022 that we see this. Overall, our view is that the housing market will remain strong in 2022, still delivering average house price increases of 2-3%. One thing to note about the renewed uncertainty concerning Covid variants is that this uncertainty has generally stimulated house moves.”
Matthew Carter, Group Head of Marketing at Homelet
“House prices have remained very high in 2021 and we believe that it is very likely that we will see the private rented sector playing a more important role in the UK’s housing supply, as many will struggle to put together a deposit for a home in 2022. That said, one trend that could perhaps impact house prices is that we are seeing an emerging generation who are renting by choice, preferring a more outgoing lifestyle to saving for a home. We expect that demand for rental properties in many areas will continue to outstrip supply in 2022, and that rental prices may grow beyond rates we’ve ever seen before.”
Dave Lister, Financial & Sales Director at X-Press Legal Services
“The property market will continue to be resilient in 2022 with prices rising as housing demand still outstrips suitable supply. Traditional seasonal peaks and troughs are predicted to return to the housing sector in 2022, with the property market operating at a steadier pace as transactions will not be influenced by external factors, such as the stamp duty holiday. We expect the market to begin gathering momentum again in January 2022 and a spike in activity following the Easter weekend, which tends to be one of the busiest times of the year for UK house moves.”
Scott Clay Distribution Development manager at Together
“The ‘race for space’ phenomenon meant existing homeowners progressed quickly up the ladder in 2021 but the same can’t be said for first-time buyers. Most were met with limited supply, extortionate prices and lengthy queues for virtual viewings. What’s more, with the end of the popular Help to Buy scheme scheduled for 2023, there will be a significant gap in the market for first-time buyers needing support with deposits in 2022. Shared ownership is a popular scheme and we continue to see strong demand from first-time buyers seeking these types of properties as they can be a great stepping stone onto the housing ladder for young families and those on lower incomes.”
Cormac Henderson, CEO at Spring
“For 2022, interest rate rises will undoubtedly ease price growth in the overall market. However, we will continue to see a growth in suburban areas where hybrid working is encouraging people to find more space. We believe prices here will grow 3-5% over the next year. In these areas there continues to be an undersupply of detached and semi-detached family homes, and urban dwellers migrating to these areas will continue to drive prices upwards. Urban areas will face a more difficult time but we are unlikely to see a price fall, instead modest growth of up to 2% is likely. Small urban apartments are likely to be the least sought after and we could see price drops for this type of property specifically.”
Viewber will continue to support the sales, lettings, housing association and property auction sectors in 2022 with its accompanied viewings and visit services. If you’d like to know more about our UK-wide, seven day a week offerings, please get in touch.
