All change: predictions for the UK property market in 2022

 

Nothing is predictable in the current climate, it seems, but there are definitely some forecasts for the UK property sector that seem a safe bet for the year ahead. 

Over the past 12 months, despite many gloomy outlooks at the start of the year, the country’s housing market has remained remarkably resilient. While UK property sales were buoyed by the stamp duty holiday, appetite for the sector remains strong regardless. For homeowners and property investors alike, bricks and mortar has remained one of the most appealing places to invest compared to other avenues.

As the year draws to a close, Kevin Shaw and Michael Cook of property services firm Leaders Romans Group (LRG), have come up with their own set of likely outcomes for 2022. From the rental market to the housing market’s links to economic performance, the pair’s overall outlook is one of optimism.

UK property will continue to climb

The group believes house prices across the UK will continue to grow in 2022, with around a 3% rise over the year. This will be matched, they say, by rental growth that should also hit 3% on average. However, in some of the top-performing areas, rental growth could even reach as high as 5-10%.

Some of this could be caused by a growing gap between demand and stock available. Some landlords in the private rented sector may have already sold, or be planning to sell, to benefit from the house price rise.

As always, across the UK property market, location makes a big difference, and certain areas are forecast to thrive more than others.

Top locations for housing sector growth

According to Kevin Shaw and Michael Cook, the north-west, East Anglia and Essex could be the ones to watch next year. These locations all offer “more bang for your buck”, meaning they will respond well in a climate where people are looking for more space post-lockdown.

They add: “Likewise, investors purchasing in the Midlands and north are benefiting from preferable mortgage deals with better loan to value ratios, improving yield and monthly cash returns on investment. It’s because of this (despite historically strong equity growth in the south), buy-to-let activity has been more prominent in the northern towns in 2021 and we expect this to continue in 2022.”

Build-to-rent boom will continue

The country’s rental market remains a vital part of the UK property sector. More than ever, though, people are looking at renting as a long-term option, and are seeking places that offer a bit more than a standard buy-to-let.

The pair from LRG think the build-to-rent boom will diversify in 2022 to encompass single-family or individual housing as well. At present, build-to-rent is often aimed at multifamily apartments with some shared facilities.

LRG adds: “This is set to expand next year with real estate heavy hitters, such as Lloyd’s and John Lewis & Partners, diversifying some of their portfolios from commercial property into build-to-rent residential property, sending a signal to landlords that there is strength in the sector. But the market needs a far larger supply of units in the build cycle to keep up with demand and this is a strong time to invest in build-to-rent.”

Renters’ Reform Bill could come in

The Renters’ Reform Bill, which was first put forward in 2019 and includes proposals to ban ‘no fault’ Section 21 evictions, could come into effect in the near future. The white paper is currently scheduled for publication in 2022. The Bill could also see the introduction of lifetime deposits for tenants.

It is advisable that landlords make themselves familiar with this Bill, and start to prepare for it. It could seek to make the rental market “safer and less susceptible to unscrupulous landlords”, say Kevin Shaw and Michael Cook.

Section 21 evictions, where a landlord can ask a tenant to leave with “no reason”, have been controversial for years, and the ruling could spark a big change in the sector.

Highgrove Mews

High Net Yield Freehold Houses

  • Commutable to London (27 mins to central Paddington station)
  • Rental demand extremely strong with large industry presence in Reading
  • Freehold with 4% net yield

£284,955 - £457,000

St Petersgate – Stockport Manchester

New Launch - Stockport Manchester, apartments from £160,000

  • Discounted launch prices from £160,000
  • Excellent transport links with 3 trains per hour to London Euston and only 9 mins journey to Manchester Piccadilly
  • Experienced development team

Assured Rent Housing Association Leases

Assured Rent Housing Association Leases

  • Assured rent & no rental voids
  • Tenant damage cover & newly refurbished inline with requirements of a corporate sitting tenant
  • Free property and lettings management

From £62,000

Emerging Birmingham Commuter Town With Properties From Just £104,000

The emerging Birmingham commuter town where properties are selling in an average of just 24 days

  • A collection of 62 two bedroom apartments and 28 one bedroom apartments.
  • DE14 is one of the fastest selling postcodes in the West Midlands.
  • 23 minute train journey into Birmingham New Street Station.

Properties from £104,000

Mill, Stockport

The Northwest's emerging property hotspot

  • Discounted off-plan 2-bed prices from £162,000
  • Completion date - Q4 2021
  • Rental yields - 6% plus

Discounted off-plan 2-bed prices from £162,000

South Central – Birmingham City Centre Apartments

Highly anticipated 28 storey launch in Birmingham City Centre with an impressive roof garden and communal facilities.

  • 154 units across 28 storeys
  • Residential multi-media community room, gym, roof garden and sky cinema
  • Excellent future connectivity via the metro system to other key transport hubs and locations around the city

from £205,800

ba-

Talk to us

Speak to our UK property experts today: 

+44 (0) 333 123 0320

Open from 9am-6pm GMT

+852 9865 4446

Open from 9am-6pm HKT

Stamp Duty Calculator

.

Unlock members only investment opportunities and full development details. Join now – it’s free, quick and easy.

Login

Not a member? Sign up for free

2022 prediction UK property

All change: predictions for the UK property market in 2022

Example

By submitting your details via this online form you agree to be contacted via email/phone/SMS by Direct Marketplace Ltd t/a BuyAssociation in relation to property investment and property developments . We do not share your personal details with third parties.  To view our full Privacy Policy click here.