Moving home: what can we expect in 2022?

Will 2022 be your year to move? Whether you’re just starting to search for your new home, or you’ve been looking for a while, the good news is we’re already starting to see more available properties for you to choose from. In fact, Rightmove saw the highest number of new sellers ever recorded on Boxing Day on Rightmove. 

So, with a huge number of home-hunters looking to move this year, what can we expect from the 2022 housing market? Some trends in the property market have changed for the long-term, while other changes are already reverting back to what we were seeing before the first lockdown period. Take a look. 

There will be more homes for buyers to choose from 

Buyers will already be starting to see fresh opportunities. Seller numbers were up by 21% compared to Boxing Day the year before, as homeowners looking to move decided to take advantage of the post-Christmas buyer surge. 

“This group of sellers may have held back last year due to the frantic market, but are now seeing it as their time to take action and have taken advantage of the high number of prospective buyers searching for their next home over the holidays,” said property expert Tim Bannister. 

Prospective sellers jumped into action on 30th December, which was the busiest day since May 2021 for people requesting estate agents to come out and value their home. It was also one of the top ten busiest ever days for these valuation requests on Rightmove. 

Buyer demand has also remained high, especially between Boxing Day and coming into the new year, so the 2022 housing market will continue to be competitive. If you see a property that could be the one for you, we recommend getting in touch to book a viewing as soon as you spot it. 

Average asking prices will rise in 2022 

We predict that the national asking price of a home – which is currently £342,401 – will rise by 5% this year, which will mean an increase of about £17,000. This is because we’re still seeing a huge number of home-hunters looking to move, and not enough homes available to buy, so the imbalance continues to push prices up. 

As always, there will be variations to this across Britain. Currently the most competitive locations for buyers are in Scotland, the West Midlands, the South West and Yorkshire and the Humber. Our forecast shows these areas are likely to see price growth of 7% or more. 

Prices haven’t risen as much in London as they have in the rest of the country, and buyer demand is not as strong, so we forecast slightly lower price growth of 3% in the capital. 

Buyer search areas have expanded — by the size of Manhattan 

People are now more willing to live further from their workplace and have a longer commute on office days. For many, bigger homes and more space have become far more important than a shorter commute. 

In fact, buyers looking for their next home have widened their search area by an average of 50km2 (19.3 square miles) compared to March 2020, which is an area equivalent to the size of Manhattan. This can be a huge game changer, as will open up a huge number of property listings that wouldn’t have been seen previously. 

 “People have extended their search area, which suggests there isn’t as much reliance on being near key transport hubs, or realising that living just a bit further away from the high street could open up more properties that a buyer can afford, or they may get more for their money. Increasing your search area by 50km2 could open up hundreds more properties to consider and this trend from buyers looks here to stay.” 

Cities are rebounding faster than anticipated 

Since March 2020, we’ve seen a huge number of home-movers swap city life for countryside and coastal areas, with London seeing the biggest shift. But we’re now seeing buyer demand for homes in the capital and other major cities return faster than many anticipated, with buyer enquiries returning towards pre-pandemic levels. This is probably driven by many businesses encouraging a hybrid remote working model rather than a return to the office full time. 

Demand for flats returns as buyers seek city homes 

Houses stole the show as the most in-demand property types when the housing market re-opened in 2020, especially bigger houses with gardens. But over the past few months, flats have emerged as the most sought-after property type for prospective buyers of a city home. 

“With more availability than other property types, and more steady average asking price growth over the last year, flats could be a good opportunity for people looking to move or to get onto the ladder this year,”  

Price premiums for more privacy — and bigger houses 

2021 is perhaps best remembered as the year of ‘the race for space and the sharp rise in average asking prices for bigger homes really shows that. Since March 2020, the asking price of a detached house has risen by 14%, and by 11% for a semi-detached home. 

The pandemic redefined the role of the home and placed new emphasis on its importance, and people looked for more room in order to work, exercise, and often teach under one roof. It also made us more conscious of our personal space, and the growing gap in price between a semi-detached and detached home suggests how valued some extra privacy is if you can afford it.