There are a lot of people claiming that there will be a housing market crash in 2022. If you search for news about house prices online, there are many media outlets that are reporting on this possible upcoming crash as well. The media narrative seems to be focused on the idea that this year will be the year of property prices plummeting and crashing.

So what do I think? I believe there will not be a property crash this year. Even with the lockdown-caused recession, house prices have been going up. The conditions in the UK market indicate that we will not see prices crash any time soon. Will the current boom slow down? I think it may, but will there be a crash? I don’t think so. In this article, I will address 3 reasons why I think UK property prices will not crash in 2022.

1. Google Invests In Billion Pound London Office

A lot of people search Google to find out what is happening with UK house prices, but let's take a look at what Google itself is doing. Google is investing in London by buying the offices they currently rent for £1 billion. Large multinational tech companies like Google have access to huge amounts of data and research on the property market in the UK and around the world. This move indicates that Google has confidence in the UK market and that isn’t something to be ignored.

Of course, there are many reasons why a company might decide to purchase office space in London. But if Google anticipated an imminent crash, they would probably hold off on the purchase so as to get a better deal on the property.

2. 40 Years Fixed Rate Mortgages

Kensington Mortgages and broker/lender Habito are offering 40 year fixed terms on mortgages. The aim is to offer certainty to borrowers worried about interest rates in the long term. This indicates that the institutions behind these offerings are not expecting massive fluctuations in market conditions that would cause an increase in interest rates. It also means that consumers are likely to be able to buy with confidence, which will further stimulate demand in the property market.

While these are smaller lenders which may not represent the wider market, this level of competition is a good sign for UK property in 2022.

3. Bank of England Lifts Restrictions And 95% Mortgages

The Bank of England is easing rules relating to the amount of money people can borrow based on their income. The Government has helped ensure the availability of 95% mortgages via the mortgage guarantee scheme. Both these moves will help to ensure that house purchases continue throughout 2022 encouraging more people to enter the housing market. It will also mean that house prices rise as the price buyers are able to pay increases due to these schemes.

The huge growth that we have seen recently may not continue, but I see no reason for there to be a crash. Each area of the UK must, of course, be considered on its individual merits but, in general, 2022 looks like a bright year for the UK property market as a whole!

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