Join our community of smart investors

The 2022 property forecast

A cooling housing market, a green premium and even housebuilder M&A are among the property trends to watch for in 2022
The 2022 property forecast

Well, that was another intensely strange year for real estate investors. Most notably – and staggeringly – residential property values have continued their ascent. The average UK house price rose 8.2 per cent to £272,992 in the 12 months to November, according to Halifax. Track back to the first lockdown in March 2020 and average values have climbed £1,691 a month – just shy of the average worker’s take-home pay. To the homeowners, the spoils.

Listed commercial property has also performed strongly, tracking the broader risk-on sentiment across equity markets and confounding many of the doubts of a year ago.

In fact, aside from a few blow-ups in smaller sub-sectors, investors would have been hard pressed to lose money from any real estate investment trust (Reit) over the past 12 months. Even the housebuilders, whose exposure to inflation, consumer sentiment and politics make for their own jittery property weathervane, are in the green. And that’s before dividends are factored in.

To continue reading...
Join our Community of Smart Investors
  • Independent full-length company analysis
  • Actionable investment ideas and recommendations
  • Expert investment tools and data
  • Stock screens from Algy Hall
Have an account? Sign in