What trends are we seeing in the UK housing market right now?


Keeping abreast of the latest changes and trends in the UK housing market is the best way for buyers and investors to make savvy purchases.

From house prices to interest rates to regulation changes, there is a constant sea of new information when it comes to the property market.

For buyers and investors, as well as sellers and tenants, predicting the next set of trends and figures isn’t always possible, but following the latest data is a good starting point.

Most recently, the Nationwide house price index revealed strong but stabilising house price growth. Housing affordability, alongside cost of living concerns, are influencing not only buying but renting trends, too. How else is the market adapting?

House prices and a buoyant UK housing market

One of the most notable trends currently being seen across the UK housing market is the continuing uphill climb of prices. Last week, Nationwide reported impressive 12.1% annual growth, bringing the average selling price to £267,620.

While this is down on last month’s figure – which was a 14.3% increase over the 12 months to March – commentators are surprised at how buoyant the sector is in the face of affordability issues.

Robert Gardner, Nationwide’s chief economist, said: “Housing market activity has remained solid with mortgage approvals continuing to run above pre-Covid levels.

“Demand is being supported by robust labour market conditions, where employment growth has remained strong and the unemployment rate has fallen back to pre-pandemic lows. With the stock of homes on the market still low, this has translated into continued upward pressure on house prices.”

He added: “Nevertheless, it is surprising that conditions have remained so buoyant, given mounting pressure on household budgets which has severely dented consumer confidence.

“Indeed, consumers’ expectations of their own personal finances over the next twelve months has dropped to levels last seen during the depths of the global financial crisis more than a decade ago.”

Return to city centres

Another notable trend that might be of interest to homebuyers and property investors is the slowing down of the “race for space” seen as a result of the pandemic.

A recent survey by Nationwide found that the proportion of people looking to escape the hustle and bustle of urban life had “declined substantially”. It found that around 12% of movers were currently prioritising this in their move, including seeking more outdoor space, compared to 15% last year.

According to Emma Cox, managing director of real estate at Shawbrook Bank, poor supply levels are “insulating sellers” and this is set to continue, particularly in traditional UK housing market hotspots.

She added: “The return to city centres after a two-year hiatus and the demand for more face to face interactions again could reignite the UK’s love affair with cities such as London.”

New research from Rightmove backs up this theory, which has showed a renewed interest in both cities and commuter towns, as well as a change in the property types prospective buyers are seeking.

Tim Bannister, Rightmove’s property data expert, said: “In the initial stages of the pandemic, houses stole the show, as people looked for as much room as possible. As restrictions have eased, being closer to city amenities has become more of a priority.”

Short-term lets remain a popular option

According to Emma Cox, short-term rentals and holiday homes are another growing trend that doesn’t look set to fizzle out any time soon; as such, property investors and prospective buyers can consider this avenue with more confidence than ever before.

Cox said: “The staycation and second home boom in seaside towns also remains steadfast, making quaint British towns a top priority for buyers too.

“The acid test for the market will be the run up to summer. Traditionally a hive of activity, sellers will be hoping for current transaction levels and price growth to prevail.

“Current expectations are that house prices will be shielded from current pressures for the remainder of 2022, with reality perhaps starting to bite in 2023 if current market conditions persist.”

One of the drivers behind the general shift towards staycations is the environmental aspect, which is becoming increasingly important to growing numbers of people looking to live more eco-friendly lifestyles.

A recent report by Mintel on domestic tourism revealed that more than half of UK adults planned to take a domestic holiday in the 12 months that followed August 2021.

Interestingly, 18% of those who plan to take more holidays in the UK want to limit their carbon footprint. Additionally, Mintel’s report on family holidays found that 14% of parents see a carbon reduction as one of their top five factors for choosing their next family holiday.

Further adding to the environmental focus, the survey showed that 28% of UK adults said they prioritise the environment more now than they did before the COVID-19 pandemic.

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


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.


Not a member? Sign up for free

UK housing market

What trends are we seeing in the UK housing market right now?


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.