National Property Market Report: March 2022

Posted by Fine & Country on 14th March 2022 -

The housing market continues to defy the prevailing winds impacting household budgets.

Moving On

The housing market continues to defy the prevailing winds impacting household budgets. As final COVID restrictions are eased across the nations, demand for property remains high. Annual price growth is strong and sales levels are robust.

Two years later 

March marks two years on from the unprecedented announcements of nationwide lockdowns in the face of COVID-19. Across the nations, final restrictions are being lifted as the UK adapts to ‘living with COVID’. As it did in the wake of the Global Financial Crisis, the housing market has yet again proved its resilience. The average price of a property in the UK is worth over £40,000 more than at the start of the pandemic, with the average price of a prime market property nearly £180,000 higher (Dataloft, Land Registry, UK HPI).

The UK economy grew by 7.5% over the course of 2021 and is tracking back to its pre-pandemic level, latest employment data indicating a record 29.5 million employees were on payroll in January, while unemployment fell to 4.1% (ONS). However, global conflict is placing additional pressure on inflation; fuel prices are reaching new records and consumer confidence in the economy is faltering. The GFK note consumer confidence in February is at its lowest level in 13 months, with consumers increasingly conscious of balancing the household books and concerns about the wider economic situation. The Bank of England Monetary Policy Committee may well raise the base rate of interest again at its March meeting, set to take place the week before the Chancellor presents his Spring forecast statement.

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