Will The Housing Market Slow Down?

Will The Housing Market Slow Down?

Property prices are soaring, but are we due a lull in 2022

Will the housing market slow down? This is the question on the lips of many potential buyers and sellers alike…

According to the UK House Price Index (HPI), as of November 2021, the average UK house price is £270,708. Property in the year to November 2021 has risen a drastic 10%. You’d be doing well if your investments made 10% in a year let alone your home. The obvious accelerator for the crazy 2021 market being the stamp duty relief that was relevant for most of the year. But there have been other more obscure driving factors. Such as people being locked in their homes and becoming restless and wanting to move. The whole idea of moving became really appealing with the stamp duty being void as well.

Now all that market madness is done, will the housing market slow down in 2022? In short, we don’t think so. There’s no stamp duty relief any more which was a massive catalyst for the mad market. Also people are going back to work and normality is returning. Whilst the Christmas / January time is generally a slow time for the property market, you will start seeing it pick up gradually as sellers now think about shifting property again. But I don’t think we will be seeing the levels of activity that we saw in 2021.

Mortgage rates are leveling out after 2021’s turbulence

Mortgage advice was as challenging as ever in twenty twenty one. With lenders constantly changing their criteria, wanting to see inside leg measurements for the self employed and mortgage rates and loan to value levels going all over the place, it wasn’t easy. 95% loan to value mortgages made a return. And since then, the rates have actually come down to a reasonable level. Even with the Bank of England raising the base rate to 0.25% the interest rates from lenders have remained competitive with most lenders returning to a normal way of working that we say pre-pandemic.

Even so, lenders are still cautious when it comes to certain types of clients. Especially with the self employed. As self employed people’s income is a snapshot over a range of time, it’s harder to see effects of events such as a ‘bad year’ until some time in the future. So some remain cautious even with our country being one of the most open in the world when it comes to COVID restrictions.

Buying a home is still a solid investment

With all that being said, you only have to look at the historic return on property to know it’s a good investment. You only have to look at the housing price index’s website and it will tell you that. The average house price at the turn of the millennium (Jan-2000) was £84,620. In Nov-21 it sat at £270,708 showing a 319% increase over 20 years. Not bad for putting a roof over your own head in the process.

Will the housing market slow down? No one can really tell but we can give you a decent idea with our fingers on the pulse. Either way, it’s a great way to create wealth and live in a property that you own. Most people need extra finance by way of a mortgage to be able to purchase a property. Contact us to see how we can advise you on this.

Regulatory Statements

Equity Release

Equity Release plans are not right for everyone and it is important that you fully consider your options and receive independent financial advice before making a decision. It is also important that, if you do decide to use an equity release product, you choose one that meets your needs.

Remember that taking an equity release plan is generally a long term option. However, there are flexible plans available that may fit your varying needs and some will allow you to repay in the future without penalties.

Buy to Let Mortgages

Some Buy to Let Mortgages are not regulated by the FCA.


All investments involve a degree of risk of some kind. This section describes some of the risks which could be relevant to the services we provide you. We may provide further risk information during the course of our services to you, as appropriate.

Our services relate to certain investments whose prices are dependent on fluctuations in the financial markets outside our control. Investments and the income from them may go down as well as up and you may get back less than the amount you invested. Past performance is not a guide to future performance.



True Advice Financial Services is a trading style of TA and SE Hollom Ltd. Which is an Appointed Representative of New Leaf Distribution Ltd which is authorised and regulated by the Financial Conduct Authority : Number 460421.

Registered Office : New Leaf Distribution Limited, 165 – 167 High Street, Rayleigh, Essex, SS6 7QA