Will house prices drop in 2022?

[ad_1]

Despite a downturn compared to last year, HOUSE prices have remained high in recent months.

According to the ONS, the UK average House Prices increased by 12.4 percent by April 2022, up from 9.7% in March 2022.

1

UK has just over two months to avail stamp duty holidaycredit: Getty Images – Getty

Property Prices jumped last year due to coronavirus, due to lack of houses in the market, demand increased and finally stamp duty Holiday.

But what is the future of the housing market?

we talked to two Property Experts to see their predictions on what will happen later this year:

Are prices likely to drop in 2022?

Mortgage expert Karen Knott of Wealth Management Company Quilter said further hike in interest rates this year could bring down home prices.

I Save About £1,000 A Year On Groceries By Joining A Food Club - Here's How
Lakhs of employees to check whether they will get salary hike using online tool

She said: “The housing market is already showing signs of a recession and how well this can pan out, coupled with rising inflation, remains to be seen but the forecast is not good.,

“However, there are currently very few stocks in the market, which will keep prices higher.”

Karen said because there was such a long period of ultra-low interest rates, it could lead to more properties coming into the market.

“This could mean that we see house prices at least stall if not cool,” she said.

“Once again, the biggest losers are first-time buyers.

“They face an uphill battle to climb the housing ladder, struggle with rising interest rates that make mortgages less affordable, inflation eats up their deposits and the rest of their lives.” pressure.”

Meanwhile, Nick Mendes, a hostage technical manager at John Charcoal, echoed Karen’s comments.

He cited a report by Capital Economics, which estimates that there will be a slight decline in prices in 2023 and 2024 due to higher interest rates.

Nick said: “Homeowners have experienced unprecedented times recently.

“The ongoing conflict in Ukraine – rate hikes, and rising cost of living – is bound to have an impact on future property market values.

“I expect a slowdown in the rate of asset growth, in the year ending with close to 3% growth in assets year-over-year.”

The figures released by the ONS in May were to reflect inflation. at the highest rate in 40 years.

My Baby Bump Is So Big That People Think It's Fake - Giving Birth Scares Me
My son is afraid to go to school after passengers stand outside the gates

The Bank of England has also warned that inflation could reach 10% within months.

This is putting pressure on the household budget due to fuel and food prices.



[ad_2]

Source link

Leave a Comment