Will house prices rise or fall in Greater Manchester in 2022? Local property experts make their predictions

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After a surge across the country in 2021, estate agents explain what’s likely to happen with the property market this year

If there is one thing we’ve learnt about the property market over the course of the last year, it’s that it can be unpredictable.

There are several factors that have affected the rise and fall of house prices in Greater Manchester in 2021, the main being the coronavirus pandemic.

Covid initially caused the property market to slow down due to people losing their jobs, going on furlough and a halt in face-to-face house viewings also put people off wanting to buy.

But following the stamp duty holiday in July 2020, and with people re-evaluating their homes and living situations after the lockdown, the house price growth began.

Despite the stamp duty cut ending in September 2021, the year continued to be a seller’s market as demand for homes outweighed the supply of properties coming onto the market – pushing the average house value up.

House prices rocketed to the highest on record last year, with the average price of a home in the UK surpassing a quarter of a million pounds for the first time ever.

Now, with the fate of the pandemic still in question, it’s difficult to know how the property market will yet again be affected over the coming year.

Local estate agents from across Greater Manchester have given us their predictions on whether house prices will rise or fall in 2022.

Maurice Kilbride is an independent estate agency owner with more than 25 years experience in the Greater Manchester property market.

Making his predictions for the year ahead, the founder of his Cheadle-based agency said: “As last year has proven, certainly in my area, Cheadle, price rises were well above the national average at around 13.4% and the law of economics is governed primarily by supply and demand.

“If the stock levels remain as low as the second half of 2021, prices are likely to remain strong, although I agree with other commentators that I think the rate of growth will be lower in 2022.

“Last year’s rises are simply unsustainable in my opinion, and other factors such as rising inflation, interest rates and fuel bills may have an effect, as of course unemployment and any further spike in Covid.

“As always, I like to remain cautiously optimistic, but feel we will have a clearer picture of the direction of travel for the year at the end of Q1 or Q2 in 2022.”

‘The market is likely to be busy, but not frantic’

Andrew Cardwell of Cardwells Estate Agents will celebrate 40 years in the Greater Manchester property field in 2022.

The experienced managing director says the two main factors that will impact property prices this year will be interest rates and the pandemic.

“As we move into 2022 the stamp duty incentive is no longer in place, however interest rates are still low, despite a small rise in the base rate to 0.25% before Christmas,” Andrew said.

“The cost of mortgage borrowing is still relatively inexpensive. For as long as the cost of borrowing is low there will be healthy demand levels.

“Ongoing concerns about the Omicron Covid-19 variant will have an impact and any restrictions and changes to the guidance which may follow.”

Despite the external factors, Andrew predicts that house prices will continue to rise but at a slower pace than 2021.

“With all things considered I would think that it is unlikely that the house prices will continue to rise at the same accelerated pace as in 2021, though I would think that continued property price growth over the course of the year is likely,” he said.

“The market is likely to be busy, but probably not frantic, like it was during periods of 2021.

“Areas like Bury and Bolton still offer excellent value for money in comparison to other parts of Manchester so perhaps they may perform slightly stronger than certain other places across the region.

“The property market is beholden to a wide range of economic, political and social factors. Despite these uncertainties I expect demand levels to remain strong and the market to be busy during 2022.”

‘Market momentum is still strong’

Stephen Litt, director of his own bespoke estate agent has also given his expectations for the Greater Manchester property market this year.

 

https://www.manchestereveningnews.co.uk/news/property/house-prices-rise-fall-greater-22632423

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