According to data published by the Office of National Statistics (ONS) in March 2022, the average house prices in the UK have increased by 9.6%. This was on average £274,000 which is £24,000 higher than this time last year. According to Zoopla’s data, the typical UK home gained £16,000 in value in 2021, taking it up to nearly a quarter of a million pounds.

When separating the UK, the increase over the year in equates to England £292,000 (9.4%), Wales £206,000 (13.9%), Scotland £183,000 (10.8%) and Northern Ireland £159,000 (7.9%). Research produced by Savills concluded that this annual increase means that, effectively, ‘houses earned more than people’ last year. This is based on the 2021 Annual Survey of Hours and Earnings, that the average UK worker earned £25,971.

Housing Demands

House prices soared during the covid pandemic due to various reasons including stamp duty and the new mortgage guarantee. On 8^th July 2020, changes to the tax paid on property purchases were announced. With the knowledge of less overall costs this could have led to sellers requesting higher prices on their properties. In terms of Stamp Duty Holiday, on the 3^rd of March 2021, it was extended until 30^th June 2021. After which the threshold decreased to £250,000 until 30 September 2021. Yet, tax breaks were originally due to conclude at the end of March 2021.

Buyers therefore rushed their property buying to ensure their purchase was within the deadlines. Thus potentially, affecting the prices within the market. Furthermore, there seemed to be a “race for space” concept. Whereby buyers, surged to invest in larger properties with the new working from home guidelines. Whilst house prices could still stabilise in 2022, demand still remains high.

Will House Prices Drop In 2022?

Rightmove, have reported the number of prospective buyers enquiring about homes was up 15% on this time last year. However, the impact of inflation and the rise in interest rates could still prove to influence the market.

Ross Counsell, chartered surveyor and director at GoodMove, comments “I strongly believe that house prices will finally begin to fall this year. We know the cost of living is continually increasing, with energy prices especially going up in the next few months. With less buyer demand comes lower house prices, and with this in mind, we expect many Brits will have to tighten their belts financially and may not be looking to move home because they may not be able to afford it.”

Development Finance With BLG

BLG are a leading 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.

​From 1st July 2024, the Recovery Loan Scheme has been extended and rebranded to the Growth Guarantee Scheme. Learn more about the Growth Guarantee Scheme.

What The RLS offers

Back in April 2021, the UK Government launched the Recovery Loan Scheme (RLS). This aimed to support access to finance for UK businesses as they recovered from the global pandemic.

If your business has suffered due to Covid-19, you can apply for the scheme. It can be used for any legitimate business purpose, whether that is cashflow, investment or growth. The scheme is open to all however, be mindful if you have borrowed from any of the other coronavirus loan schemes. The RLS loan is still available to you however, it might change the amount you can borrow.

Originally, the scheme was intended to finish at the end of 2021 however, thankfully for many businesses it has been extended. Within the Autumn Budget 2021, the UK government announced it would extend the scheme until June 2022.

How It Has Helped Business So Far

Research has shown that there are now over 76 accredited lenders that have offered over £1bn to small UK businesses towards sustainable recovery. Additionally, 14% of brokers saw an increase in demand for loans, leading to submitting 50% more applications than previously.

At the time of the RLS Launch, Catherine Lewis La Torre, CEO, British Business Bank, stated: “Businesses up and down the country are beginning to look beyond the pandemic towards the opportunities available to them in the recovery. The British Business Bank is committed to supporting smaller businesses in accessing the finance they need to grow sustainably in the future. In meeting the £1 billion milestone, the Recovery Loan Scheme is demonstrating its impact by helping thousands of companies to fund their further development.”

The Latest Updates

As of the 1^st of January 2022, the RLS load has been extended for an additional 6 months. Although, consists of the following changes:

• The scheme will only be open to businesses with a turnover not exceeding £45m per annum
• The maximum amount of finance available will be £2 million per business (maximum amount per Group limited to £6m)
• The guaranteed coverage that the government will provide to lenders will be reduced to 70%

How BLG Can Help You

If you are looking to refinance previous loans or need extra help financing your development project, BLG is here for you. As an accredited lender, specialising in property development finance across the UK. We can help you with the financing needs of your projects.

We are specialists in property development finance, both residential and commercial. Our dedicated team of more than 300 years’ experience can guide and advise you in the best direction. Supporting all regional developers, unlike high street lenders, providing flexible terms and fast decision making.

Contact us today to take full advantage of the RLS loan until it finishes in June 2022.