House prices will continue to rise in 2022, says Property Shop

By Scott Dawson Advertising

14 Jan 2022

ps-steven-chippendale-press.jpeg

House prices in the UK rose by more than 10 per cent in 2021, which was the fastest growth rate recorded since 2004.  

The price of an average UK home hit a record high of £254,822 in December, up nearly £24,000 over the year. The average house price in Lancashire hit £194,260.

House prices are now 16 per cent higher than before the pandemic struck in early 2020, just as we adapted to the first in a series of lockdowns. One in 16 privately owned homes in the UK were on course to change hands by the end of December 2021.

This can be attributed to a number of reasons – the first being a sudden and urgent need for more space, as people adapted to working from home, and wanted outdoor space of their own. Alongside that was a decrease in transactions in flats, and an increase in other housing, partly because of desiring outdoor space and more room, and partly as people left cities as they no longer needed a short commute to work in the city centre, due to the work from home rule, which has continued as a trend even when not mandated.

Other factors included the temporary relief to the stamp duty land tax which came to an end in September 2021, and saving ability during lockdowns which gave more flexibility on deposits. Householders were also able to improve their houses due to having more disposable income – finishing off the bathroom, building a garden room, or just general redecorating which enabled them to request a good price from the market.

One factor that may help to keep house prices buoyant for 2022 is the news that the Bank of England is considering scrapping the affordability rule, that tests whether a mortgage applicant would still be able to afford payments if the interest rate was 3 per cent higher. The current Bank of England base rate is just 0.25 per cent. Six per cent of mortgage borrowers – about 35,000 people – would be accepted for a new mortgage if this rule was scrapped. A further 1 per cent of renters – about 50,000 people – are not able to meet the affordability rule. Recommendations of not lending more than 4.5 x salaries would stay in place, ensuring people can afford the amount they’re borrowing.

House prices will also stay buoyant due to demand, as people still want more space and many are now working from home regularly or permanently. First time buyers are also in a good position in the market, as their offers are valued over others due to a lack of chain and being ready to move. Buy to lets are also remaining popular as rates on savings are low currently, and the average yield on a rental property is around 8 per cent.

Steven Chippendale, managing director of Property Shop, commented: “We’re seeing house prices continue to rise in East Lancashire, and no slow down in demand – we have multiple viewing requests for every single property. We have to advise customers on taking the best offer for their property rather than just the highest, ensuring the highest chance of success of all sales in the chain going through. 

The end of furlough payments may also stimulate demand, as people who wanted to move but were on furlough return to full salary and are now released into the market.

2022 will prove to be another interesting year for the property market, and we do forecast property prices will continue to rise – but there will probably be a slowing down, with a total rise of 5 per cent over the year.”

Property Shop are the local property experts, with branches in Burnley and Accrington. Independent and family owned with a team of 30, they run a sales, lettings and commercial agency giving them breadth and depth in the local property market. You can see more on propertyshopltd.com and book in for a valuation.

Sources: Zoopla, Nationwide, ONS, Bank of England

Latest news

1

Management buyout at Suresite Group Steve Holden

Management buyout at Suresite Group

17 Oct 2025

2

Meet the influencers who have generated £2m sales for one company Helen and Richard Chalu new

Meet the influencers who have generated £2m sales for one company

16 Oct 2025

3

WHN strengthens position in prestigious legal guide Daniel Long

WHN strengthens position in prestigious legal guide

16 Oct 2025

4

Warden appoints new commercial manager to strengthen project delivery and growth Peter Heskine

Warden appoints new commercial manager to strengthen project delivery and growth

16 Oct 2025

5

Stockley's finds its sweet spot Stockley's front view

Stockley's finds its sweet spot

15 Oct 2025

Background image for hub sign up block

LBV Hub

Leverage Lancashire Business View platforms

Post your news
Post your events
Post your offers
Build your network
Improve your SEO
Gain coverage in the magazine
Sign-up
Events
CMI Level 5 Management and Leadership Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Management and Leadership Course

Preston Campus, Preston , PR1 2HE

09:00 - 17:00

CMI Level 5 Project Management Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Project Management Course

Preston Campus, Preston, PR1 2HE

08:00 - 17:00

Help to grow management course
Help to grow - barriers to growth.png.png
LBV Hub Seminars
26 Sep 2025 - 16 Dec 2025

Help to grow management course

Preston Campus , Preston , PR1 2HE

09:00 - 15:00

RISE - Lancashire's unique leadership programme for women
thumbnail_Emma Weston Illustration WENDY BOWERS RISE Illustrstion.jpg.jpg
LBV Hub Seminars
22 Oct 2025 - 18 Mar 2026

RISE - Lancashire's unique leadership programme for women

East Lancashire Chamber of Commerce, Clayton le Moors, BB5 5JR

09:30 - 15:30

Women scaling up Blackpool Fylde and Wyre
LBV Hub Seminars
22 Oct 2025 - 09 Jan 2026

Women scaling up Blackpool Fylde and Wyre

The Small Business Academy, Blackpool, FY4 5JX

09:30 - 15:30

HR Essentials for pubs, bars and licensed venues
EventBrite NORi - 22nd Oct Webinar.png.png
LBV Hub Webinar
22 Oct 2025 - 22 Oct 2025

HR Essentials for pubs, bars and licensed venues

Online - Teams, Leyland, PR253XH

13:30 - 15:00

Chamber Business Lunch – October
LBV Hub Networking
24 Oct 2025 - 24 Sep 2025

Chamber Business Lunch – October

Lancaster Golf Club, Lancaster, LA2 0AJ

11:00 - 13:30

North West Business Expo 2025
https---cdn.evbuc.com-images-880456273-4862066883-1-original.20241022-105445.jpeg.jpg
LBV Hub Exhibitions
24 Oct 2025 - 24 Oct 2025

North West Business Expo 2025

Bolton Stadium Hotel, Bolton, BL6 6SF

09:00 - 15:00

Lancaster District Business Support Expo
Lancs-cham-logo.jpg.jpg
LBV Hub Networking
29 Oct 2025 - 29 Oct 2025

Lancaster District Business Support Expo

The Platform, Morecambe, LA4 4DB

10:00 - 15:00

Chamber Breakfast Networking – November
Lancs-cham-logo.jpg.jpg
LBV Hub Networking
06 Nov 2025 - 06 Nov 2025

Chamber Breakfast Networking – November

Porsche Centre South Lakes, Carnforth, LA6 1FW

08:30 - 10:30

Lancashire Police business update with The Police and Crime Commissioner
Lancs-cham-logo.jpg.jpg
LBV Hub Roundtables
10 Nov 2025 - 10 Nov 2025

Lancashire Police business update with The Police and Crime Commissioner

Lancaster Castle, Lancaster, LA1 1YN

14:00 - 16:00

Beyond the Brand: Building trust through values and integrity
1.png.png
LBV Hub Networking
11 Nov 2025 - 11 Nov 2025

Beyond the Brand: Building trust through values and integrity

Society1, Coworking Space, Preston, PR1 3LT

18:00 - 20:00

Advertise with us

Reaching 50,000 members, our print, digital and event platforms offer a fantastic way to raise your business profile and help you grow.

Find out more LBV124 Online Graphic
Subscribe now

Weekly news bulletin