2021 was an incredibly unique year for the UK housing market, and the Bristol housing market was affected with unprecedented cost increase.
While the Land Registry figures show an 11% increase in housing costs across the country, Bristol was a hotspot for the price increases. In 2021, housing costs were 0.4% higher compared to the rest of the country. But even more alarmingly, Bristol house sales saw a 2.1% increase from December of 2021 to January of 2022. And Bristol buyers were paying 8.3% more on average than the rest of the South west.
Which leaves many buyers and sellers wondering if the prices will continue to rise throughout 2022. Our team here at Brunt and Fussell, a Bristol estate agency, have put together some predictions so you can decide if it’s time to sell your property or wait to buy a new home.
Why did property prices increase?
The property market skyrocketed in 2021 as buyers and sellers took advantage of leaving the city life as work habits changed, the temporary cut to stamp duty, and the low interest rates. In fact, the property market saw such an increase that prices on house sales increased by nearly 11%, with the average house sale price reaching £275,000.
With the local cost changes to the Severn Bridges, Wales saw the highest growth in the country with 13% increase on prices of house sales.
Will house prices weaken in 2022?
Many leading experts believe the price of Bristol house sales, and national house sales, will decrease as the year continues. And here is why.
1. The rise in inflation
Inflation increased by 5.5% in January, and it is predicted to rise by 7% in June. This is the highest increase in nearly 30 years. With higher inflation, many households will have less disposable income, and it will be harder to save and move home. Leading to a decrease in demand.
2. The end of low interest rates
The Bank of England increased the base rate to 0.5% in January, and it will likely rise to 1.25% by the end of the year. With the changes to borrowing rates, it will slow down the sense of urgency to jump on taking a mortgage.
3. Easing of supply issues
Throughout 2021, there was a lack of supply for the demand. There weren’t enough properties on the market or new homes being built. This was in part due to supply chain issues from Covid along with export and import complications during Brexit. As these issues are ironed out, and less people are buying homes, it will help the supply issues.
Sell Now. Buy Later.
If you’re looking to sell your Bristol property, now is the time to do it. It’s still a seller’s market to make a hefty profit. And if you’re ready to sell, you need to work with a reputable and credible Bristol estate agent. Make sure to have a thorough valuation of your property before going to market.
If you’re looking to buy, we recommend waiting out a few more months. But if you’re ready to start the process, and take your time to decide, then get in contact with a trustworthy Bristol estate agent.
