“The housing market defied expectations in 2021, with quarterly development reaching 3.5% in December, a stage not seen since November 2006. In 2021 we noticed the common home value attain new document highs on eight events, regardless of the UK being topic to ‘lockdown’ for a lot of the primary six months of the yr.
“The shortage of spending alternatives afforded to individuals whereas restrictions had been in place helped increase family money reserves. This issue, alongside the Stamp Responsibility vacation and the race for house because of homeworking, may have inspired patrons to deliver ahead residence purchases that will have been deliberate for this yr. The extension of the Authorities’s job and earnings help schemes additionally supported the labour market and will have given some households the boldness to proceed with purchases.
“An absence of accessible houses on the market, and traditionally low mortgage charges, have additionally helped drive annual home value inflation to 9.8%, its highest stage since July 2007.
“Wanting forward, the prospect that rates of interest could rise additional this yr to deal with rising inflation, and rising pressures on family budgets, suggests home value development will sluggish significantly. Our expectation is that home costs will keep their present sturdy ranges however that development relative to the final two years will probably be at a slower tempo. Nonetheless, there are various variables which might push home costs both method, relying on how the pandemic continues to affect the financial surroundings.”
