As we near the end of what is set to be the strongest year for sales and house price inflation since 2007 - with over £473bn worth of sales agreed throughout the year and demand continuing to outstrip supply for the eighth consecutive month - we’re looking ahead to 2022 at what is projected for the coming 12 months.
Increased house price and rental yields growth
With an average 6.6% house price growth across the UK property market over the last 12 months, the current market strength is expected to continue well into 2022 as the demand for homes remains consistently 25-30% higher than the average across the previous five years.
By mid-September, buyer demand throughout the country was up 28% on the previous five years, and the expectation is that demand will continue to outweigh supply as we head into the new year, further supporting the dramatic price increase we have seen throughout 2021. House prices in 2022 are expected to increase on average by 3% throughout all regions across the country, with a projected 1.2m sales agreed, thanks to the current momentum in the market that will largely offset growing headwinds according to Richard Donnell, Zoopla’s Director.
The continued growth of regional cities
With certain regions such as the North West and North East reaching an 8.3% and 6.7% increase in house prices, respectively, regional cities such as Manchester and Newcastle have seen a dramatic increase in pricing over the last 12 months. With Savills reporting an 11.4% increase in house prices in Manchester, and a reported 9% increase in house prices in Newcastle, buyer demand within the regional cities has skyrocketed. As property prices in the North remain affordable, the Northwest is forecast to record the highest increase in property prices throughout 2022 with 4%, whilst regions further south and the capital are falling behind, with London projected to have the lowest growth of 2% throughout the year.
London’s market continues to fall behind
As London continues to report a lower-than-average house price inflation of 2.3%, demand for homes in the capital has been hit the hardest by the pandemic, with Zoopla reporting that investors have moved away from the capital and invested further North.
As the property market within the capital continues to cool and decline, it remains clear to see that the migration of big businesses, investors, and tenants away from the south have contributed to the growth in the housing market throughout the Northern Powerhouse.
Where to invest in 2022
With the positive economic forecasts for the coming year, and the UK property market set to maintain its momentum well into 2022, investors are continuing to look at the regional cities for investment, of which have a multitude of available opportunities, ranging from turn-key completed developments to off-plan opportunities completing within the year.
Ancoats Gardens
Our flagship development scheduled for completion in 2022, Ancoats Gardens is our most anticipated residential development to date. Located in the sought-after Ancoats neighbourhood, Ancoats Gardens is comprised of 155 luxury one, two, and three-bedroom apartments with 5* hotel-like facilities on-site, such as a residents’ rooftop garden, state-of-the-art duplex gym, co-working space, and residents’ lounge.
With a projected 7% rental yield, and an expected 3% capital growth, invest in Ancoats Gardens today from just £329,950.
Westpoint
Located on the fringe of the city centre, Westpoint sits within the heart of the Trafford Regeneration Scheme and features 317 studio and one-bedroom apartments with high-quality, communal facilities. Known as our first foray into Co-Living, Westpoint also benefits from its location situated between the University Academy (U92) and Manchester’s central universities.
Invest in Westpoint from just £109,950.
90 Princess Street
Fully fitted with sustainable technologies, such as Air source heat pumps, underfloor heating, and solid Amtico wooden flooring, 90 Princess Street provides residents with a sustainable and bespoke living experience in modern, stylish apartments.
Invest in 90 Princess Street from just £224,950.
To learn more about the available investment opportunities heading into 2022, and how to capitalise on the rising capital growth within Manchester and the regional cities, get in touch with our property experts today.
Explore our other areas which include: Ancoats, City Border, City Centre, Northern Quarter, Princess Street, Salford Quays, Spinningfields, and Trafford.
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