REAL ESTATE
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2022 UK Housing Market
The demand for real estate increased dramatically in 2021 as buyers flocked to take advantage of of the UK government's temporary reduction in stamp duty around the deadlines in June and September.
Home sales in July 2021 were up by over 33% compared to what they were the previous year and between June to August 2022 there was a 7.2% increase in house purchases.
Fig.1.
Source: HM Land registry, Registers of Scotland, Land and Property Services Northern Ireland, Office of National Statistics - UK House price index
Relating this information to the current living and energy crisis hitting the UK, there will be a definite slow down in the growth of house prices across the the country even though reports are not showing a price decrease but the opposite. as house across all countries in the UK show records high for the average home price shown in Fig.1.
With people facing affordability constraints due to the current economic situation of the country, there will be a potential where new properties coming to the market will not be purchased as swiftly as before, hence forcing some developers and sellers to reduce prices to be able to close down the excess supply in the housing market. Even though there's a slower growth rate in the market it is unlikely to see a major drop in house prices in the longterm.