UK housing market is set to be closer to “normal” in 2022, following a “hectic” last 18 months.
Estate agents and builders have seen high demand for properties during the pandemic, as people reassessed housing needs during lockdowns. Buyers were enticed by a stamp duty holiday, which has now come to an end.
UK Finance, the trade association for the UK banking and financial services sector, today said 2020 was set to be a record year for mortgage lending. Banks will lend £316 billion against houses this year, up 31% on 2020 levels. House purchases are set to hit 1.5 million this year, up 47% on last year and the highest annual total since before the 2008 financial crisis.
But there are signs of more traditional patterns coming back, as price of properties coming to market in December have seen their usual seasonal dip, with the average price down by 0.7% (£2,234) this month.