Lauren Foster (Student)
In December 2021, house prices reached an average of £253,822 according to Nationwide. A standard sized house has increased in value by around £23,902 since January 2021. This is the largest increase of house prices since 2006.
Despite this, it has been predicted that the market will slow over 2022 due to the stamp duty holiday ending and because of the Covid-19 variants
Nationwide’s chief economist Robert Gardner said
“The Omicron variant could reinforce the slowdown if it leads to a weaker labour market,”
The Covid-19 pandemic has changed how people live which has impacted the housing market. It has influenced buyers to substitute their homes in large cities, to live in suburban and rural areas. London has appeared to be the prime city affected by this.
The increase in interest rates will also affect the housing market.
The Bank of England increased their borrowing interest rates from 0.1% to 0.25% at the beginning of December 2021, in an effort to tackle the rise of inflation. The consequence of this meant less people can join the property ladder. The correlation of increased interest rates, and people being prevented from work due to the pandemic, will mean that people may be discouraged from buying homes. House prices have also risen yet the growth of income has slowed.
The data statistics below represent the average increase of house prices across the UK, this was collated from 1973-December 2021.
- Northern Ireland: Up 12.1% to £167,479
- South West: Up 11.5% to £294,845
- Outer South East: Up 11.3% to £329,869
- North West: Up 11.2% to £196,806
- Yorkshire and Humberside: Up 10.8% to £190,855
- East Anglia: Up 10.4% to £268,146
- East Midlands: Up 10.4% to £221,813
- Scotland: Up 10.1% to £172,605
- West Midlands: Up 9.4% to £227,031
- Outer metropolitan area of London: Up 8.8% to £410,992
- North: Up 7.7% to £148,105
- London: Up 4.2% to £507,230
Here at SULAC we can help with any property related issues. If you would like an appointment please call 01782 294800 or email SULAC@staffs.ac.uk