UK property prices to continue to rise as demand outstrips supply

(Alliance News) - The UK national average price of property coming to market will rise by 5% next ...

Alliance News 1 December, 2021 | 5:11AM
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(Alliance News) - The UK national average price of property coming to market will rise by 5% next year, Rightmove predicted on Wednesday, as strong buyer demand and a historically low level of available properties will push up prices in 2022.

The Milton Keynes-based property portal noted that there will be market variations to this, with the most competitive markets being in Scotland, the West Midlands, the South West and Yorkshire and the Humber. These areas are likely to see price growth at a higher rate of upwards of 7% next year.

Buyer demand is now currently up by 2% on the frenetic period this time last year, and up by 40% when compared with November 2019.

Rightmove Director of Property Data Tim Bannister said: "It's been a hectic 18 months for the property market since the end of the first lockdown, with changed housing needs driven by the pandemic inspiring many moves, and the stamp duty holiday encouraging some movers to bring their plans forward.

"The net result as we approach the start of the 2022 market is the lowest ever available stock of property for sale per estate agency branch, yet with ongoing high buyer demand. This imbalance between supply and demand has resulted in buyer demand per available property being at near record highs, suggesting that the 2021 scenario of multiple buyer bids on a high proportion of properties when they come to market is set to continue in the new year."

The expected pace of rises in 2022 is expected to be slower than 2021, however. This is due to increasingly stretched buyer affordability following this year's rapid rises in average prices.

"Movers will still benefit from good mortgage availability and attractive rates even if base rates rise, and more choice of property coming to market and the slower pace of price rises compared to 2021 will encourage some who have held back so far to take action," Bannister added.

Rightmove's price forecast is based on a house price predictive model that uses "millions" of supply, demand and pricing data points across the property market, along with insights from a Rightmove panel.

By Greg Roxburgh; gregroxburgh@alliancenews.com

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