However, the property market is still defying expectations. Despite predictions of a summer slump, the average price of property hit a sixth consecutive high in July, reaching £369,968, according to Rightmove’s Index.
Amid that growth, how will the rest of 2022 play out? Will the much-discussed post-summer slump take place? To help you navigate another tricky year, I’ve reviewed property services company Leaders Romans Group’s (LRG) customer trends to discuss what we anticipate for the rest of the year
Four trends we expect to see
1. We won’t see house prices fall dramatically…
Fears of a ‘burst bubble’ are unfounded. We aren’t seeing a significant drop-off in buyer interest and despite higher mortgage rates, demand remains steady.
Following the stamp duty-led home-moving frenzy of 2021, there’s still a striking mismatch between supply and demand of properties, with housing stock at a particular low.
2. …But growth will remain static
Although we won’t see rapid rises or huge slumps in pricing in the remainder of 2022, we do see signs of a levelling-off in housing prices. Given the Bank of England (BOE) interest rate hikes’ impact on home buyers, house price growth looks to remain relatively static for the remainder of the year, with the cost of living crisis likely to impact the number of homes being sold.
We expect slower growth, but no significant fall over the medium or long-term.
3. We’ll see a rush to mortgages
Mortgage interest rates have been rising quickly in 2022 off the back of five increases to the BOE base rate. When interest rates change, it always creates a flurry of new applications, leading to a backlog.
We expect to see people who are looking to buy or those looking to remortgage in the next six months trying to secure a mortgage rate as soon as possible to avoid further rate increases. Those not on fixed mortgages are expected to be hit hardest.
4. The North West will flourish
Despite a general cooling, LRG is continuing to see house price inflation in the North West and we expect to see continued housing price growth in the region for the rest of the year.
The North West is an area that has particular supply and demand imbalance, with Liverpool and Manchester two of the leading cities for property demand – causing a rise in value. Outside the major cities, demand for properties in Warrington in particular has seen growth of up to 70 per cent above the five-year average while Oldham follows at 65 per cent and Preston at 60 per cent.
As Rightmove data for July 2022 shows, the region is seeing an 11.2 per cent year-on-year house price increase from July 2021, along with a 0.8 per cent increase month on month from June. That’s compared to zero per cent growth in the South East and 2.9 per cent decrease in Wales.
