House prices in England and Wales will recover from a December drop in the first two months of next year, according to Reallymoving analysis.
The firm says that after a monthly drop of 1.1% in December, house prices are expected to rise 2.5% in January 2022 and 0.2% the following month.
This equates to an average house price of £ 342,900 in February, which compares to an average house price of £ 333,960 today.
Other data from Reallymoving shows that ten of our 12 regions in the UK will see a price increase from December 2021 to February 2022, with prices in the east of England expected to increase by 10.1% and 11, 7% in Northern Ireland.
He expects prices to fall 4.6% over the same period in Yorkshire and the Humber and 1.9% in the South East.
Reallymoving bases its projections on the purchase prices it records when homebuyers search for property transfer quotes and other moving-related services on its comparison platform.
Buyers typically look for quotes three months before the end of their purchase, which provides an indicator of home price trends over the coming months.
Reallymoving Managing Director Rob Houghton said: “Growth in house prices in the new year is inevitable based on transactions already underway, after a strong market performance in the fall, when a lack of stock and high levels of buyer demand helped support prices.
“As we head into Christmas, a number of headwinds could impact buyer sentiment, including the Omicron spread which is rekindling uncertainty and concerns about jobs, inflation and growth. economic.
“Although interest rates remain very low, the first hike seems significant and shows that despite the escalation of the Covid-19 situation, the Bank of England will not wait to fight rising inflation .
“Rising borrowing costs will impact the affordability of first-time buyers in the market and those who are able to buy soon may be more inclined to go ahead and get a fixed rate deal. as quickly as possible.”