Home sale and purchase comparison site Reallymoving has predicted that there will be a sharp increase in house price on the market in the first few months of 2022 which is great news for people looking to sell.
What is the prediction?
In their report, Reallymoving says that after a decrease of 1.1% in December, house price will most likely rise by 2.5% in January 2022 and by 0.2% in February. They have also said that ten UK regions will see a price increase across December 2021 to February 2022, with prices in the East of England projected to rise by 10.1% and by 11.7% in Northern Ireland. They also predict that prices in Yorkshire will decrease by 4.6% at the same time. They have drawn these predictions from the purchase prices they capture when home buyers search for conveyancing quotes and other moving-related services on their website. Buyers often search for quotes three months before their purchase completes, which provides an indicator of house price trends over the months ahead.
What are Reallymoving saying?
Chief executive of Reallymoving Rob Houghton has commented on these new projections saying: “House price growth in the new year is inevitable based on transactions already underway, following a strong market performance in the autumn when a lack of stock and continued high levels of buyer demand helped support prices. As we head towards Christmas there are several headwinds with the potential to impact buyer sentiment, not least the spread of Omicron which brings renewed uncertainty and concern over jobs, inflation, and economic growth. Although interest rates remain very low, the first rise feels significant and shows that despite the escalating Covid-19 situation, the Bank of England won’t wait to tackle rising inflation. Rising borrowing costs will impact the affordability of first-time buyers coming to market and those in a position to buy soon may be more tempted to press ahead and secure a fixed rate deal as quickly as possible.”