The UK housing market in 2021 was dynamic, and frantic, to say the least. For the first time in 6 years, renting a house in the UK was cheaper than buying a property in the UK, in 2021. In fact, from November 2020 to November 2021, the average price of property rose by a whopping 20 per cent, which is considered to be the highest jump in price growth since the financial crisis.
Now, as the new year begins, estate agents believe that the UK housing market will continue to grow, but at a steady pace. According to most experts, the average price of property will increase by 3.5 per cent to 5 per cent in 2022, which is great news for first-time buyers looking to buy or invest in property in 2022. Here are some of the best areas in the UK to buy property in 2022, as well as a few tips to keep in mind before investing in a property in the UK housing market.
Best areas in the UK to buy property in 2022
Instead of looking at houses to rent in Cheltenham, consider buying a property in this posh town. Cheltenham experienced the highest property growth in the UK in 2017, with the average price of property rising by a whopping 13 per cent. From December 2020 to November 2021, the average price of property in Cheltenham went up by 11 per cent, thus establishing the average price of property at £377k. In Cheltenham, the price of a new build property is valued at approximately £504k.
Birmingham is one of the best areas to buy a property in the UK, not only in 2022 but since 2016. One of the biggest reasons that Birmingham is the best place for first-time buyers is affordability. While the average price of property has risen over time, buying a house in Birmingham is relatively affordable. Also, in the last 10 years, the average rental price has risen by a shocking 30 per cent, and is expected to continue to rise by 12 per cent in the next 5 years, hence making this a great buy-to-let investment.
Manchester has continued to be one of the best places to live in the UK. The average price of property in Manchester has risen by 21.3 per cent since 2016, whereas the average price growth has jumped by a whopping 12.8 per cent from May 2020 to May 2021, itself. Experts claim that since the last 20 years, Manchester has had the highest price growth rate, with the average price of property increasing by 326 per cent since May 2001.
Liverpool is the second most affordable city in the UK, with an average property price of £158,173. From May 2020 to May 2021, Liverpool has seen a whopping 20 per cent rise in the average price of property. One important fact to consider is that Liverpool essentially has a young population, with 74 per cent of the population between the age of 17 and 29, thus making this area the perfect place for a long-term investment.
As more people started working from home, buyer demand for spacious properties increased. Keeping with that trend, almost 53 per cent of the tenants in London city centre enquired about moving into the boroughs and suburbs of London. As the demand changed, and so did the buyer preference, more and more people started moving to London suburbs. Some of the best boroughs are Hillingdon, Havering, Croydon, Newham, Bromley and Ealing.
Tips to keep in mind before investing in a property in 2022
The current housing market is so dynamic that potential buyers have no choice but to be flexible. Be flexible about what you are looking for; with a limited supply, it might be hard to find a property that matches everything on your wishlist. Instead, try to find a property that has everything you require. Also, when it comes to making an offer or closing a deal, you need to be flexible while negotiating.
Understand market trends
With the average price growth increasing rapidly, it is very important for first-time buyers to understand the market trends and to enter the property market at the right time. Usually, seasonal changes lead to fluctuations in house prices. Also, first-time buyers should attempt to make the most of the low mortgage schemes as well as the low-interest rates, for which an understanding of the market is very important.
Know what you can afford
With rising inflation and increased rates of interest, buying a house will only become more expensive. Before you even start looking at properties, it is important to know exactly how much you can afford to spend on your new investment. Keep in mind, the asking price can increase at any given time, especially in this dynamic housing market.