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Mike Kelly

Housing market to record its strongest year since 2007 - but will 2022 be as good?

There's not much good news around however, according to experts, the housing market is set to enjoy its strongest year since 2007.

It is predicted that around 1.5 million sales will take place by the end of 2021, according to the property website, Zoopla.

The combination of a nation re-evaluating what they want from a home, low mortgage rates and the stamp duty holiday have all driven unprecedented levels of demand.

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Homes collectively worth £473 billion will be sold this year, that’s up £95 billion on the number of offers accepted in 2020.

But there is a sting in the tail. Zoopla added that housing transactions are expected to decline to 1.2 million in 2022, in line with the long-run average

However this is still relatively high compared to the past decade, according to the property website.

Richard Donnell, from Zoopla, said: “2021 is set to be a record year for the housing market with the most moves by homeowners since 2007 and nearly £500 billion of home sales.

“The impact of the pandemic on the housing market has further to run but at a less frenetic pace.

“We expect the momentum in the market to outweigh some emerging headwinds from higher living costs and the risk of higher mortgage rates.

“The latest data shows a turning point in the rate of house price growth, which we expect to slow quickly with average UK house prices up 3% by the end of 2022.”

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