The UK has been an umbrella for property investments resisting inflation, fluctuations, and the volatile nature of the market. It has a glorious history of high property returns and sustainable capital profits. But, Covid has given rise to unprecedented times. Change is the only constant. Property investment in the UK can provide astounding results, but it’s necessary to keep persisting trends and factors while decision-making.
The UK Property market has demonstrated power and palpability since early 2022. The price and rents are touching the skies across numerous locations. As a result, property investors are finding optimal investment opportunities, foreseeing higher escalation of real estate prices.
Let’s study the current property investment trends of 2022 for sustainable investment.
- Price Inflation, but Slow Speed
The prices are expected to rise but not with the momentum of 2021. From the estimation of Rightmove it is foreseen that since the pandemic effect is diminishing, the market scenario is shifting to normal. 2022 expects the current national asking price of £342,401 to surge by 5%, which roughly calculates to £17,000.
- Positive Development of Private Rental Market
The UK rental market is anticipated to progress with a continuous higher graph. As per the Zoopla report, the rental market will show a 4.5% rise compared to a 3% rise in 2021, as city center demand increases. The rents have seen cascading effect equal to 13 years, because of the accelerating demands of city centers. It’s estimated that about 1/3 of the total millennials will establish livelihood in rental properties.
- Emphasis on Sustainable and Eco-friendly Living
After the pandemic gave a reality check, Many Property owners are focusing on healthy and sustainable living. Efforts are being made to improve energy efficiency this year.
In 2018, UK homes contributed 15% of total greenhouse gases emission. To mitigate this number, the Government introduced the Green Finance strategy in July 2019, with the intention to promote green living practices and eco-friendly property investments.
- The North and Midland regions with be Top-Performers
It’s expected that the policies introduced by the prime minister will target the north-south divide. The best property investment regions are identified by JLL,s 2022-2026 UK residential forecast report, comparing and analyzing overall market, economic and social factors, thus producing accurate results. West Midland will lead the UK property market with a 7% increase which is 2% higher than the national average. Southwest Scotland and Yorkshire secure the second spot. London Properties will witness the most minor growth this year, approximately 3%.
Seeing the trends, we can conclude that, the UK property market will remain flexible and resilient in 2022 with increased housing demands. The market will have better stability as compared to 2021. The trust in UK property strength will further push up the development and growth of market investments.