What House Price Acceleration Means For Buyers In 2022

Will There Be Continued Price Growth In 2022?

Nationwide’s Chief Economist, Robert Gardner, said that there has been an “increase of £29,162 over the past 12 months”. This staggering rise is supported by a robust housing market and maintenance of activity, with the demand for properties still remaining high and limited stock resulting in pressure on market prices. 

With prices seemingly on the up, the question is: will this accelerated price growth continue for the remaining quarters of the year? And what does this mean for buyers and sellers? 

In considering this, there is much to be taken on board with the political, social, and economic state of affairs. Robert Gardner comments that the “continued buoyancy” is “surprising” when considering rising costs of living, average household incomes, increased rates by the Bank of England, and the current events in Ukraine.  

What Does This Mean for Buyers?

With economists estimating a further increase in rates of inflation by the Bank of England over the next few months, and the cost of fuel and energy bills dramatically rising, there is increased pressure on how households will spend their disposable income. As it stands, rate rises alone are set to add an additional £1,000 per year on mortgage repayments, according to recent data from Trussle. 

Many who may have been considering buying homes are now being forced to re-evaluate their finances to weather the upcoming storm, which in turn is likely to deter a lot of buyers from making such a big financial decision at this time, given the current uncertainty. 

Is This a Good Time to Sell? 

With many reconsidering their finances and whether now is the right time to buy, the uncertainty is likely to result in a decrease in the demand for properties and, in turn, limit the chances of there being a bidding war if you’re looking to sell your property at this time. 

However, it’s not all doom and gloom. If you’re looking to sell and repurchase a property elsewhere, you are still in a great position with house prices not looking to drop any time soon. Additionally, you can also still take advantage of the current five-year fixed mortgage rates, which although on the rise, are still historically lower than previous figures seen. 

Speak With Our Mortgage Advisors Today

If you’re unsure about whether now is the right time to buy or sell your property, don’t stress; our Mortgage Experts in Northamptonshire can discuss your current situation with you and provide experienced guidance on the best steps moving forward. We also have access to a wide range of available products on the market to get you your best deal.

Get in touch with a member of our friendly team today to book a free, no-obligation appointment with us.