Where Will House Prices Rise the Most in 2022?

UK house prices are set to increase in the New Year – with some regions seeing a bigger jump than others.

Property experts predict that average property values will increase by 5% in 2022, with a growth of more than 7% in certain areas of the country.

The data, which has been released by the online estate agent Rightmove, suggests the increase in prices is due to strong buyer demand and a low level of listed properties, which will push up prices in the New Year.

The areas likely to see the biggest increases include Scotland, the West Midlands, the South West and Yorkshire and the Humber, with an estimated house price growth of 7% or more next year.

Rightmove research showed that the average asking price for a home in Scotland in December 2021 was £165,963, while in Yorkshire and the Humber it was £219,889 and £264,055 in the West Midlands.

The fastest growth is seen in regions outside of London, where property values in the capital are predicted to rise by 3% – a much lower rate compared to the rest of the UK.

It’s thought that the slower growth rate of property prices is down to several factors including the reaction to Brexit, additional taxes for overseas buyers and people choosing to move out of the city as a result of the pandemic.

Rightmove’s director of property Data Tim Bannister concluded: “It’s been a hectic 18 months for the property market since the end of the first lockdown, with changing housing needs driven by the pandemic inspiring many moves, and the stamp duty holiday encouraging some movers to bring their plans forward.

“The net result as we approach the start of the 2022 market is the lowest ever available stock of property for sale per estate agency branch, yet with ongoing high buyer demand.

“This imbalance between supply and demand has resulted in buyer demand per available property being at near-record highs, suggesting that the 2021 scenario of multiple buyer bids on a high proportion of properties when they come to market is set to continue in the new year.”