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The Housing Market This Spring Posted: 21st April 2022

It has been predicted that the UK house price growth we have seen since June 2020 will start to slow down this year. Recent forecasts predict annual growth of 5% this year with just a 1% growth in 2023.

This is due to the increase in mortgage rates, the rise in our cost of living and inflation and the NI increase. However, Knight Frank predicts that prices in prime central London will continue to rise as global travel resumes following two years of restrictions.

The latest report is more positive when it comes to the buy-to-let sector with UK rents predicted to go up by as much as 4% this year which builds on the strong performance in the second half of last year.

Over the long term, the report predicts that robust earnings growth, supply constraints and high tenant demand will support an increase of 17.1% in rental values over the next five years.

Over the last two years, the UK property market has seen unprecedented conditions. With a distinct lack of supply and exceptionally high demand as people sought more space, plus historically low borrowing rates have resulted in double-digit house price growth over the last twelve months. It looks like we will finally see growth slow down over the coming months and return to single figures.

With rising mortgage rates and inflation, we should see demand ease and supply increase, which will level out the imbalance we’ve seen over the last few years. With home working set to phase out – or at least return to a hybrid model for many – the race for more space will also calm down. The cost of living squeeze will also continue into next year and those who had planned to move may sit tight.

In the five years to 2026 it’s believed that we will see cumulative growth of 13.6% with regional differences.

Talk to us about the housing market in East Renfrewshire and East Kilbride. We can advise on house prices and the current levels of supply and demand in your area.

Whatever your reason for moving; whether it's for extra space, to downsize or you may simply have found your dream home, Nicol can help. Our knowledge of the local property market helps us develop a marketing plan that's right for you and your property.
We want our clients to be delighted with the service we provide. Listening to your needs and understanding your requirements is our starting point. To find out more about our approach to selling homes, download our comprehensive Guide to Selling your Property here.
If you are planning on selling your home, contact Nicol Estate Agents today for an appraisal of your property. Our Managing Director Douglas Nicol and Sales Manager Daniel Cohen carry out hundreds of market appraisals every year, giving them an intimate and unparalleled knowledge of the property market in Glasgow, from city centre apartments to family homes and building plots. We will talk to you about the property market in your area, compare sales evidence, local demand for similar properties, outline our tailored marketing plan and provide details of our sales support strategy right through to completion.