UK Housing Market Predictions for 2022

2020 and 2021 have been turbulent, to say the least. With the coronavirus pandemic, Brexit, and COP26 influencing housing policy nothing has been predictable. However, the UK’s housing market has remained remarkably resilient. For both property investors and homeowners, bricks and mortar have still remained appealing for investment.

Although, people’s emotive buying behaviour has changed due to covid. Both estate agents and builders have seen a growing trend for properties as people reassessed their housing needs, especially during the lockdown. Once before city centres, good facilities, shops, and restaurants were a priority. However, research has found individuals are now moving towards more rural and urban areas. It was found that 10% of British people have moved away from a city due to the coronavirus pandemic. Additionally, 24% considered the move with 44% saying the pandemic has made city living less appealing. Research conducted by Zoopla concluded that 22% of individuals were ‘eager’ or ‘very eager’ to move home within the next 18 months as a direct result of the pandemic.

Is There A Fall Within The Property Market On The Horizon?

With the enforcement of working from home, many office workers are now looking for a more suburban lifestyle with greener and space to settle. This has then left many office spaces have been left empty. Additionally, this trend will continue to grow as businesses become more flexible and accustomed to this way of working.

However, due to the end of furlough, rising inflations, the final stamp duty holiday ending, increased tax, and increased living costs, it is predicted that there may be a fall on the horizon. According to the latest HM Land Registry UK House Price Index report, house prices increased by 2.5% between September and August. Reporting there was an annual increase of 11.8% equating to on average £269,945 in September. Across the UK, the North West showed the greatest growth rate of 5.3% with London being the hardest hit throughout the pandemic.

Rightmove’s director of property data, Tim Bannister, stated there will be “A return to a less frenetic property market due to more choice, and forecast slightly higher interest rates, will suit many movers who have held back during the last 18 hectic months.” While Zoopla claims “House price growth is forecast to run at 3% by December 2022, in comparison to a rate of more than 6% now.” Therefore, resulting in 20% fewer property sales. Add this to the short supply of building materials due to Brexit and COVID, will the market change in 2022?

House Prices In 2022

According to Athena Hubble, managing director of property portal Boomin, “Looking ahead, there is likely to be an impact from the end of the Government furlough schemes over time, that could trigger more homes coming to the market, with downsizing and selling off from rental homes as key drivers. Financial impacts are likely to see rental demand continue to grow with rentals now cheaper than buying (outside of larger deposits). However, demand is likely to continue to support price inflation, delivering a lower but consistent rise across the UK in 2022.”

How Can BLG Help?

As a principal lending specialist in property development finance, we are positioned to help you. Providing residential and commercial finance ranging from £1 million to £15 million we have the ideal skill set to lend and advise. Priding ourselves on fast decisions and flexible terms we can aid you through these turbulent times. Contact our financial experts today who will take time to get to know you and your aims.


“We have used BLG for development finance for over 8 years. During that time we have found their knowledge and expertise in the property development industry to be second to none. Their loan process, pragmatic and flexible approach to lending and flexibility when required has supported our business needs throughout the period and provided us with support to deliver new homes in Bristol and the surrounding areas.”

“As property developers you never know the curve balls that you may get and a project that is great on paper may prove a bit more tricky.  This happened to us on a project that BLG have funded and throughout they have supported us.  Our business likes to be collaborative and when we hit those tough moments it really felt like we were working as a team with BLG.  If you have a decent project you can get it funded, but what you really need is a business that is there to support and advise you as well.  For us on this project it was BLG.”

“I approached BLG Development finance with an opportunity I had in Chesham, Buckinghamshire, to build 5 new build houses in 2021. My main contact was Anil Bains who is a Director covering Asset Management. Within very quick timescales, BLG provided me with indicative quotes in regards the finance levels they could offer me. Having considered those levels, I requested a valuation to be carried out which again was dealt with swiftly. We proceeded to completion. The build went very smoothly with monthly monitoring being carried out by BLG and monthly drawdown requests dealt with in a very timely manner. Due to a difficult time generally in the market in regards selling, I was in need of a six-month extension to the loan which again was appraised very quickly and granted. Having dealt with numerous funders over the last 20 years, I can only speak highly of my personal experience with BLG and would very confidently work with them again on any future projects. “

"From our side it has also been a pleasure working with BLG and the team there. We have found you easy to deal with, proactive in resolving any minor issues that have arisen through the project and shown great flexibility in working with us as a partner. We will certainly like to work with you on future partners."

“I really appreciate your hard work. We really like the way you communicate & I must say I haven't seen many people who are that approachable.”

“A very efficient processing team, dealing with the DD once deal credit approved, through to completion”

“Many thanks for your efforts on this one and getting it approved and sorted so swiftly, very much appreciated. I am sure I will be speaking to your over the coming months.”

“We had other funding options, but chose to use BLG again, as we work well with the team, who always provide very clear information and advice with a friendly approach throughout the funding process. Very efficient and always very helpful.”

“Many thanks Anil, it’s been a real pleasure working with BLG so far.  We’re lining up the next project too”

“We would recommend all staff we have dealt with at BLG, as we are very satisfied with the team and the initial offer/terms presented, then you and the funding team, through to the draw down team at valuation stage.”

“All documents are clear and the way you keep clients informed, all the way along the funding process, is refreshing for us”

“With regard to what should be improved at BLG, we work with many lenders in our business and we do not get the help and response we have had on the two projects with all at BLG on our funding for our developments.”

“We would particularly mention Dave Edwards and Tom Pitts as being central to having a smooth working relationship and being positive and helpful at all times. Their guidance in helping us navigate the project from inception to completion was invaluable. As was their patience, particularly at the beginning. We look forward to many future projects with the BLG team.”

“We would like to express our appreciation for your support on our development in Bristol. We were very pleased that, from the outset, you shared our vision of the project to convert a dated but classical building, that had outlived its usefulness as a school, into unique luxury apartments with views overlooking the city. We found our dealings practical and streamlined. Monthly payments were processed in an efficient and timely manner.”

“BLG are very good at communicating with clients and all documents are very clear and all at BLG are always happy to help.”

    Quick Enquiry?

    We’re here to help.