If you’re a doctor or dentist who is planning to buy or sell a property this year – from a first home to an investment buy-to-let property – we’ll keep you up to date on the property market and the nation’s property prices. Contact one of our advisers for personalised advice.
This article does not constitute advice. Professional advice should be taken prior to acting on any part of it. Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.
What’s happening in the UK Property Market?
In the last month of 2021, annual house price growth made a small increase, with growth hitting 10.4% in December, up from 10% in November. This makes 2021 the strongest calendar year performance since 2006. Month on month, prices haven’t changed much once again, recording a 1.0% increase.
The average house price in December was £254,822, up marginally from £252,687 in November, but still a record high, up £23,902 over the year. Prices are now 16% higher than they were before the pandemic hit in early 2020.
It might come as a surprise with the unpredictable economy, not to mention the end of the stamp duty holiday, but demand has remained strong over the last few months. Mortgage approvals remain above pre-pandemic levels and in fact, the first 11 months of 2021, the number of property transaction was almost 30% higher than the same period in 2019. The low supply of homes on the market certainly contributed to the strong house price growth throughout the year.
What will the market look like in 2022?
Most experts are predicting a slowdown this year as so many people brought their home purchases forward to take advantage of the stamp duty holiday and avoid additional tax.
As ever, the coronavirus will still play a part, especially with the latest variant, Omicron, not yet thought to be at its peak. It could potentially contribute to a slowdown if it results in a weaker labour market. But even if the wider economy remains buoyant, higher interest rates might deter potential homebuyers from trying to enter or advance on the property ladder. Affordability is already shaky since house price growth has outpaced income growth significantly over the last year and half.
As it has been for the last few years, the outlook for the future is extremely uncertain. 2021 was a surprisingly strong year in the market and it’s possible 2022 could be the same. The momentum from the end of last year, and new housing priorities for buyers thanks to the pandemic, can still drive market activity and price growth. Only time will tell.
Check back next month
There’s never been a more important time to keep an eye on the market and the changes from month to month, so be sure to check back monthly for all the updates on the UK property market.
Figures quoted from Nationwide House Price index December 2021.
Mortgages for Doctors and Dentists
Always remember to visit our site monthly for your regular update on the nation’s property prices.
If you’re planning to buy or sell property this year contact an advisor for personalised advice.
At Dental & Medical Financial Services, our experts are dedicated to helping our clients select the right mortgage deal for your needs. If you’re ready to take the first step toward home-buying, get in touch with us today.