As the post-Christmas productivity lull eases off and we’re now, sadly, forced to get back to something like normality with our work lives, we’re starting to see traffic from potential property investors get back to normal as they look at their investments for 2022 and beyond.
At yieldit, we don’t just sell property investments, we also offer advice and guidance to our clients about their investments, the market and property more generally.
One question we get asked a lot by prospective investors is about what we expect to see in property over the coming 12 months, and what trends are emerging more generally so that they can make better informed decisions before investing.
With that in mind, we’ve taken a look at two of the main house prices trends we see emerging for 2022 so far.
House price increases
First and foremost, we fully expect house prices and property values to increase across the year, however, you should be aware that there’s likely to be a slowing of the runaway momentum we’ve seen since 2020.
There’s a number of factors at play here, but the bottom line is that it’s no bad thing. The first thing to consider about prices is that as we emerge from the pandemic, much of the early demand for spacious houses with gardens is likely to tail off.
Bear in mind that most people over the past 18 months have had to spend a not insignificant amount of time working from home and this has meant that there has been a big focus on home working, but this won’t last.
Secondly, the incentives brought in by government such as the stamp duty holiday have now ended, so we should expect to see a slowing in demand and a return to normality quite soon.
Prices will increase, but not as quickly as the past few years.
North and midlands property prices
In terms of the hot areas to keep your eye on for the year, there’s little surprise in our judgement that the midlands and the north of England will continue to be the hottest areas to invest in.
Cities such as Manchester, Nottingham, Derby, Sunderland and others are seeing a resurgence in their local economies and an increase in people moving to the areas because of the lower cost of living.
Due to a lower cost of entry into the market this also means that yields in these areas are excellent. In terms of property prices expect these areas to outperform much of the rest of the county once again.
If you’re looking at property to invest in this year these are the main themes we’re seeing and predicting and if you need advice we’re happy to talk you through the current market and what investing in buy-to-rent property means for you, so why not get in touch with one of our experts today?
