There is no denying that 2021 was an incredible year for the UK property market. Many would have predicted that global economic instability would have shackled much of the market through all forms of shortage, demand and opportunity. And yet, we have seen record house price growth and rental demand far outstrip supply.
Now into our second month of 2022, we’re starting to see an economic path appear which begs the question, just what could this year hold for the UK property market?
Here are three of our most likely predictions.
Growth will continue long into 2023
Despite strong growth throughout 2021, it’s highly likely we will see even further records broken in 2022. The latest residential forecast report from JLL has indicated that 2022 will signal a five-year period of sustained growth, with a major impetus on delivering a broad array of residential property.
Looking deeper into JLL’s findings we can see real potential in the North West of England, where cites such as Manchester and Liverpool face some of the most investable potential. JLL predicts that Manchester for examples, will see price growth increase by around 25.8% towards the end of 2026.
Lack of supply is here to stay
The UK government has in recent times faced a real challenge in delivering a sustained supply of new housing. Much of the social sector has been plagued with long waiting lists and substandard conditions. As such, the pressure has grown on the private sector to deliver both rental and social housing which will ease the national demand.
To date, the latest government figures indicate that the annual deficit of new homes stands at around 100,000, a fairly staggering figure. The shortfall is being felt most in the rental sector, where in the last three months of 2021 renters experienced the fastest rise in over a decade, as the average UK rental price grew by 8.3% to almost £1,000 per calendar month. To put this into context, this surge represents around £62 more a month for a typical rental property.
The same applies to those looking to buy their first home, as annual national house prices grew by 7.1%, an increase on average of around £16,000. With many cities across the country only having a handful of rental properties finding their way to the open market each week, it’s hard to see how demand will be met by the end of this decade as proposed by the current UK government.
We all want more space
It’s clear that many people have had to share space during the pandemic, as furlough and job insecurity deterred people from buying or renting during the height of covid in 2020. As such, people have struggled to really forge their own space, garnering the growing urge to live away from the family home.
It’s not only internal space that most desire, with lockdowns putting into focus the need for outdoor freedom, many developers have had to rethink their plans to include more green areas.
Speaking to Mitchell Walsh, Managing Director of Intergritas Property Group, he explained: “We have always looked to offer our buyers the most practical and rental focused layouts. We believe it’s important to build a space anyone would be proud to call a home. What we have started to see is the demand for better communal space in our developments, and in response we will offer well-appointed green space, communal work areas for those with flexible working and where possible, commercial cafés and shops right on your doorstep.”
“By including these key elements, our buildings will help create a strong local neighbourhood for the future.”
To find out more about the work Integritas Property Group is delivering today, head over to their website here.