There is nothing delightful yet equally stressful at the same time like purchasing a property of our own. It is the most crucial responsibility one can invest time and money into. It is essential for people to be financially stable and plan their budget beforehand to manage their finances without any hassle. Keeping an eye on the property prices and the housing market status from time to time will give a clear idea as to when people can purchase their ideal property that falls within their budget levels. There are several houses for sale in Bicester, Chesterton, Hardwick and other neighbouring villages where people are seen capitalizing their money as a means of a long-term investment. With the availability of mortgage loans from local banks and lenders in the UK, it has become easier for people to arrange their finances in a short period and gear up their home buying process.
Despite the lockdown scenario that happened in 2020 and the rising numbers of unemployment across many parts of the UK and overseas, people were flocking into different neighbourhoods on a house-hunting spree. Due to the increasing demand for different types of properties, the market value spiked up within a short duration.
As the UK property market matures, many will be wondering whether house prices in the UK’s regions can keep growing. House prices can be a touchy subject for a lot of people. It is all too obvious that the property market is facing fluctuations multiple times in a year. There are many talks about whether or not the property prices would ever drop in the UK by next year- 2022. It seems many aspiring homeowners and property investors are worried that they may miss out on great investment assets if the housing prices do indeed plummet during the next few years.
CONTRIBUTING FACTORS FOR PRICE SPIKE
The implementation of lockdown in the UK immediately saw a significant dip in the property market across all boroughs and villages. The stamp duty holiday was introduced in July 2020 to overcome this problem. This holiday exempted stamp duty charges for properties worth up to £500,000 till the end of July 2021. This holiday observed the flooding of new prospective buyers across countries who started investing in varied property types. The exemption of duty charges eventually made the property owners increase the asset prices to a significant number. Adding to the stamp duty charges, the mortgage rates offered by lenders were affordable for buyers, and this was another contributing factor for the sudden increase in the property market. Property prices in the UK have been bounding up in the last few years and reached a record-breaking high in the month of August 2021.
CURRENT SITUATION OF THE UK HOUSING MARKET
The average house price in the UK is £225,000. The housing market is currently on top of the charts. The demand for a residential property has grown in multi-folds, as many prospects are hunting for a single house in the UK. People are hurrying to make use of the current duty charge threshold- £250,000, which is effective till September 31 2021. Likewise, property owners are following the increased price rate with the overflowing interest from people. The current situation has observed a great demand for properties but a lack of supply in most areas of the UK, which is another significant reason for the prevailing property rates. It might take a while for these prices to cool down.
PROPERTY MARKET IN 2022
It is difficult to predict the property market in the UK at any point in time. However, the property cycle has been regular over the last few years, with which the property prices and the housing market status can be determined to an extent. Stamp duty charges have now come back to the usual rates after a smooth transition. Previously, the housing prices were increased due to the exemption of duty charges for properties. After the restoration of the usual duty charges, the property prices will gradually fall back to the rates that existed a few months ago. Buyers will be charged for properties with a threshold of £125,000 from October 1 2021. According to some recent reports, the chance for a further change in stamp duty is high. This is done to bring down the current property prices and create a proper balance in the housing market.
The recent change in the mortgage rates that come with the lowest interest rates, high LTV for many property variants and different types of buyers has impacted the pricing methods of sellers. With all these factors put together collectively, we can predict the fall in property prices to an extent. Some experts are predicting an overall slash of £5,000 in the property market in the coming months or at least by 2022.