A third (34%) of 18–34-year-olds plan to buy property this year, suggesting there’s likely to be strong competition for house purchases in 2022.
Many currently rent, as 14% of tenants want to buy their first home in 2022, according to research from Market Financial Solutions.
Among existing homeowners, 14% plan to sell up and move home in 2022, while 6% hope to purchase an additional investment property.
It seems numerous potential buyers are inspired by the growth of remote working, as 43% plan to look in a different area to where they currently live for that reason. Meanwhile half (50%) want a property that has more space as the pandemic means they spend more time at home.
Paresh Raja, chief executive of MFS, said: “After a frenetic year for the property market in 2021, in which house prices rose sharply, there is a great deal of speculation as to how 2022 will unfold. Our new research shows we should not expect any sudden slowdown; the fact that 18% of UK adults – over 9 million people – intend to buy a property in the coming 12 months shows that demand remains sky high.
“Yet our research also underlines the challenges that stand in front of prospective buyers. The so-called ‘race for space’ means that competition for certain properties – such as houses with gardens and spare rooms for home offices – will be fierce. Meanwhile, rising inflation, the potential for further interest rates hikes, and delays in securing mortgages, could also act as stumbling blocks for those looking to buy property.
“Forward planning will be crucial for anyone looking to buy a new home or invest in property. Having their finances in order and, if required, a lender in place will ensure they can act with speed and confidence, which will improve their chances of being successful in a competitive market.”
Two thirds (66%) of prospective homebuyers are worried about inflation and rising house prices, which they say will hinder their chances to buy in 2022.
Further, 38% said that the complexities and long waiting times involved in getting a mortgage are a major challenge when looking to buy.