We have done the research for you; we have gathered up the top 5 predictions that you need to know for 2022 from expert sources. If you are considering remortgaging, purchasing your first home or if you are looking to invest then it is important that you consider the changes in inflation and interest rates. 

With the hope of a better economic situation in view, it is essential to consider how this will affect the property market. We want to consider the future forecast for 2022.

Overall, the 2022 market looks like it is going to be, a watered-down version of 2021. That means while price increases might be slowing and competition could be a little less intense, overall, we're still looking at an abnormally hot market..

1. Sellers will still mostly have the upper hand

The market is in high demand, with properties being listed and taken off the market in as little as four days, which is not a lot. Proving that properties are going quickly, people even entering bidding wars and sellers taking the ‘highest offer’. 

Inventory is low so most sellers can continue to expect multiple offers, and while some markets still have buyers offering top proces for virtually any property that's listed, others are starting to see moderation.

Sellers are still needing to prepare their homes for traditional sale, by ensuring that it is in good condition, they can do this by deep cleaning, painting if needed, and taking care of any repairs.

2. House price growth will slow in 2022

The pace of property price growth will slow in 2022 due to 'headwinds' such as higher mortgage rates, soaring living costs and increased taxes, Zoopla's latest house price index has claimed.

Mortgage rates are likely to increase 'modestly' in 2022, ending the year closer to 3 per cent, it said - but it claimed that an increase in mortgage rates would hit sales volumes harder than prices.

3. Buyers are getting fed up

As many of the Gen Z begin to explore the housing market it is clear to see that social media channels such as Instagram, Twitter and TikTok are influencing their decisions. There seems to be a broadening understanding that this is less about their individual financial choices and more about the market failing to supply affordable housing that keeps pace with current demographics.

Potential buyers are finding ways to get a home and do whatever it takes in the process to be successful. “Sellers are getting greedy, and buyers are getting smarter” according to Holden Lewis. Buyers have been getting creative with their offers to beat the competition." This can include workarounds that avoid a full home inspection and contingencies that cover potential appraisal gaps.

4. Buy now pay later schemes, like Klarna could begin to hurt your credit score

Klarna, Laybuy and Clearpay are just some of the companies offering shoppers to spread the cost of payments, with many currently not affecting your credit score if payments are missed.

If a customer misses a Klarna payment, it’s not currently reported to credit reference agencies – but Klarna’s UK lead Alex Marsh told Radio 4’s Moneybox that this will soon change.

He said: “What we are looking at in terms of to protect consumers is to work with the credit reference agencies to enable reporting in the future. We work with debt collection agencies to support customers on payment plans. They [debt collectors] do not have the ability to report back into the credit reference agencies.”

However, this will most likely change in the near future! 

An Experian spokesperson said, ‘If these credit schemes are used properly, they won’t hurt your credit rating, and in some cases could even strengthen it. But it’s important for people to carefully check with their signing up for.’

5. All eyes will be on inflation and the base rate

The Bank of England increased the base rate to 0.25% earlier this month, in a response to soring inflation, and it could rise further in 2022, according to Which.

This moderate increase is a fair prediction given that 2021 was the year we saw an increase in home sales in the UK, with more homes sold in 2021 than in the previous 14 years. But if the last couple of years has taught us anything, it's that anything is possible. 

This market is forever changing, and with uncertainty about inflation, employment and of course the ongoing pandemic we can expect some fluctuation in the market. 

So, what are you hoping for in 2022? Let us know on social media, hashtag #MortgagePropeller to join in! 

Have a good one!