The housing market has defied expectations over the past two years, holding up better than expected to the challenges presented by the COVID-19 pandemic. In May 2020, the Bank of England warned that property prices could fall up to 16% in response to the pandemic; however, in 2021, prices rose by 9.8%.
It’s predicted that average house prices across Britain will continue to rise by more than £40,000 over the next five years. It is also expected that the shrinkage in property prices across the north-south divide will continue during the same period. What will this mean for property in St Albans in 2022?
Pandemic-led Demand
The Government introduced a range of measures over the past two years designed to help mitigate the worst impact of the pandemic on the economy. Although the Stamp Duty Land Tax holiday, which stimulated the market during the pandemic, is no longer in place, potential buyers could take advantage of the opportunity to save for deposits during the pandemic. The benefit of this increased demand is likely to continue across the market into 2022 and be seen in popular areas like St Albans.
Londoner’s Getting More for Less
Although St Albans’ average house prices exceed the average price across the UK, buyers recognise that lower prices in St Albans offer them the opportunity to buy a property that offers more space, for a lot less than they’d pay in the capital.
In addition, changes to the working habits for many Londoners have also driven a demand for properties that have the space to accommodate home working, something that can be readily achieved in St Albans.
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Rising Popularity of St Albans
This, combined with St Albans’ rich and diverse history, the mix of greenery and city life, and being recently named one of the happiest places to live in the UK, the area’s popularity shows no signs of slowing down in 2022.
In addition, a recent study showed St Albans to be in the top 10 places to raise a child in the UK. With excellent transport links to London and the Midlands, a vibrant cultural scene, and a vast range of pubs and restaurants to choose from, the city’s popularity is only likely to increase demand for property within St Albans and increase prices.
Squeeze on Spending Habits
In amongst the good news for property demand and prices throughout 2022 in St Albans, the squeeze on spending habits and increased cost of living will likely impact the levels of growth. However, the recent rise in interest rates has helped to combat the impact of rising inflation for savers.
It is believed that house prices within the UK will continue to grow in 2022. However, this is likely to be at a slower level than seen over the previous 12-months, with most estimates predicting an increase of approximately 1% this year.
Looking to Move to St Albans?
If you’re looking to buy a home in St Albans, our expert sales team can help. We have over 30 years of experience within the St Albans property market and are well equipped to help you find your dream home in the area. Get in touch with our friendly team today on 01727 836561 or email sales@daniels.uk.net.
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