Have green home grants been introduced for homeowners?
The Government announced that they are offering 5,000 grants to replace gas boilers with low-carbon heat pumps. The move may hit customers who have traditional gas boilers installed, so this is something for homeowners and landlords to note. The change is designed to encourage homeowners to us more expensive, but more eco-friendly options. If you'd like to learn about the multiple ways to make a property better for the environment, head here.
What does 2022 hold for the property market?
2021 has been a record year, with sales set to exceed highs of 2007 and over £473 billion of new sales agreed
According to Zoopla, the property market is set to record the strongest year for sales and house price inflation since 2007. In fact, this year saw £473 billion of new sales agreed, which is 95 billion higher than 2020. This could be a result of the nationwide re-evaluation of housing needs, low mortgage rates and the additional boost from the extended stamp duty holiday.
Record- low mortgage rates could increase to 3% by end of 2022
Low mortgage rates have become an important part of the housing market over the last few years - and have even bolstered higher house prices. Buyers entering the market have become used to low mortgage rates which have ranged between 2% and 3% since 2015. The general consensus is that interest rates will increase in 2022. Zoopla predicts they will have risen to 3% by the end of next year - the highest rate since 2015 but still historically low.
Will house price growth increase in 2022?
"In terms of 2022, we expect HPI to be around 3.5%, but there is potential that it could come in a bit higher if supply fails to improve..." says David Plumtree, Group Estate Agency Chief Executive at Countrywide’s parent company, Connells Group.
If we look ahead into 2022, mortgage offerings will remain competitive, even if rates increase slightly. Continued scarcity of homes for sale could remain well into 2022, adding pressure to prices. However, the general trend over the last few months of 2021 has signified a slight slowdown of price growth where new sales are being agreed. It will be interesting to see how this plays out in Q1 of 2022.