The housing market, like everything else, has been impacted due to the ongoing coronavirus pandemic. The prices of houses in the UK are constantly changing. Should you buy now before the prices rise further? Or should you wait? If you buy it, when should you buy it? Here we have tried to answer all these questions and have also mentioned what's the best time to buy property in the UK in 2022.
The Numbers
According to the
latest report, house prices have risen by over 11% in the year to Jan 2022. In
Jan 2022, the house prices in the UK also hit a new record high of £276,759,
say the figures from the Halifax House Price Index. It's an increase of 9.7% in
just 12 months.
The Reasons
There are many
reasons why house prices are rising in the UK. Some of them are:
·
The supply of houses is small
·
There was plenty of pent up
demand
·
People now have a desire for
more space and are inclined towards rural living
·
The mortgage rates are quite
low
·
Shrugging off the stamp duty
holiday (It ended in October 2021)
What is the
Best Time to Buy Property in the UK in 2022?
There is no
single answer to this question. The time of the year one should buy a property
depends on personal preferences, requirements, and budget. We have outlined
which buyer should buy the property when, as a general rule.
Spring
is the right time to buy a new home for people who want more choices and want
the sale quickly completed.
September is a
good time for people who want to view different properties, as many sellers
list their properties this month.
August,
mid-November, and December are generally slower months as people go on holiday.
Many people list
their property when the New Year begins due to New Year Resolutions (and other
reasons). This is a good time to buy a property.
April to June
are also good months to buy a house as many people list their properties during
these months.
Impact of
Omicron
The Omicron
variant will also likely impact the property market in 2022. Chief economist
Robert Gardner expects the housing market to slow down in 2022 and has also
raised concerns about the Omicron variant.
He said:
"Even if wider economic conditions remain resilient, higher interest rates
are likely to exert a cooling influence. Indeed, house price growth has
outpaced income growth by a significant margin over the past 18 months, and, as
a result, housing affordability is already less favourable than before the
pandemic struck. However, the outlook remains extremely uncertain. The strength
of the market surprised in 2021 and could do so again in the year ahead."
He added, "The
market still has significant momentum, and shifts in housing preferences as a
result of the pandemic could continue to support activity and price growth.
Indeed, the Omicron variant could serve to reinforce the shift in preferences
in the near term."
Sources:
https://www.thetimes.co.uk/money-mentor/article/good-time-buy-a-house/
https://robertholmes.co.uk/news/best-time-of-year-to-buy-a-house/
https://www.nationalworld.com/lifestyle/money/what-will-happen-to-house-prices-in-2022-will-uk-sold-price-of-homes-drop-amid-fears-of-housing-market-crash-3527811