Experts worried housing boom in areas like Hucknall could end this year

Local confidence that the housing market in Hucknall and across Ashfield will remain buoyant in 2022 has been dampened by leading property experts.

By Richard Silverwood
Monday, 3rd January 2022, 5:18 pm

Annual growth in 2021 soared to 14 per cent in Ashfield, according to the latest figures from the Land Registry.

And across the UK as a whole, the average price house went up to £272,992, an increase of £34,000 since the start of the coronavirus pandemic.

Just before Christmas, estate agents felt sure the boom would continue into the new year, although they did warn that any rise in interest rates would ultimately bring demand down and level out prices.

Could the recent surge in the housing market be coming to an end this year? Photo: Daniel Berehulak/Getty Images

The Bank Of England duly did increase interest rates from 0.1 per cent to 0.25 per cent in a bid to tackle inflation.

Now, many advisers are predicting the boom in UK house prices will come to an end next year, with another cause being household finances becoming increasingly stretched.

David Hannah, principal consultant at the Leicestershire firm, Cornerstone Tax, which specialises in property, said: “There are many uncertainties in the UK housing market as we head in to 2022.”

“One of the predominant problems is the current supply within the market, with estate agents complaining about lack of stock.

"The disruption to the global supply chain, caused by the pandemic and the closure of the Suez Canal, continues.

"There is still a shortage of building materials, which has caused delays in the start and completion of many residential housing projects.

"On the other hand, the tendency to work from home also appears to be persistent.

"So what is going to happen to all that vacant office space – is it going to be converted into new homes?

"The imbalance between supply and demand has, inevitably, raised the average UK house price.

"We saw another 0.9 per cent increase in November, taking the average price to a new high.

"But it is unclear whether the average will continue to climb throughout 2022.

"A solution to the global supply issues will cause an increase in new builds, providing the market with some much-needed extra stock.

"This should subsequently decrease the average house prices, but there are many obstacles facing the UK housing market which have caused a lot of uncertainty.”

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