How will the UK property market perform in 2022?
As we’ve discussed, the UK property market has seen record growth in 2021.
The Stamp Duty holiday over the summer, an increase in demand for houses in the “race for space” during the pandemic and the perennial UK housing under-supply combined to push house prices up.
There are further concerns about unemployment caused by the end of the furlough scheme, although, to date, the jobs market has remained extremely robust.
3% growth predicted for 2022
However, Zoopla, the property website, are predicting a 3% increase in house prices in 2022. Although this represents a lower level of growth that seen in 2021, it’s still a healthy capital appreciation for property investors.
Property is a long term investment
Of course, property is a long term investment. Yearly house price increases are interesting, but they don’t give a full picture of the long-term success of the market. It’s like judging the summer on one day of rain.
45 year house price growth in the UK
The UK property market has grown consistently and spectacularly over the last 45 years, as you can see below.
Indeed, in the last 14 years, house prices have doubled.
In the last 10 years, house prices have increased by more than 50%.
In the last 5 years, they’ve increased by 25%.
Even following the 2008 financial crisis, although prices fell, they recovered after 5 years.
What should investors do in 2022?
With any investment, we always recommend taking a long term view of at least 10 years. There may be yearly fluctuations, but as the growth pattern shows, there’s no 10-year period in the UK that would have seen an investor’s assets depreciate.
Although 2022 may see slower growth than recent years, the dependability of the UK property market has been proved over a long period of time.
If you’d like to speak to one of our advisers regarding your property portfolio, contact us today.