Buy forecast 2022 for UK expats and foreign nationals

Given the sharp rise in prices in 2021 and the impending rise in rates, there won’t be as much room for price increases in 2022.

While interest rates are expected to rise, Savills predicts the rise will be gradual and not have a drastic impact on affordability for UK expats and foreigners looking to buy using a UK expat or overseas mortgage mortgage in 2022.

There will be another area of ​​the rental market dedicated to moving companies who have sold their home but cannot find another apartment to move to.

According to Savills, the northwest is projected to grow 4.5% in 2022.

Savills is forecasting 4% growth in the Midlands in 2022, while Zoopla is forecasting growth in the East and West Midlands of 4% and 3.5%, respectively.

With the end of 2021, we are forecasting the UK expat and overseas national mortgage market trends for 2022.

MANCHESTER, GREATER MANCHESTER, UK, December 27, 2021 /EINPresswire.com/ – 2021 is drawing to a close. It was another turbulent year in the real estate and rental market. For those British expats and foreigners who had no option to buy in 2021 or who want to buy in 2022, Liquid Expat Mortgages has put together a buy forecast for 2022. We’ll take the data of some of the greatest researchers and explain what it means for British expat and foreign national investors.

What’s in store for 2022?
Given the strong price growth in 2021 and the impending rise in interest rates, there will not be so much scope for price increases in 2022 to take out loans at high LTV ratios. Because of these factors, Savills forecasts significantly more subdued growth in property prices – 3.5% in 2022 versus 9% in 2021. Similar growth is forecast for subsequent years, with Savills showing growth of 3%, 2.5% and 2025 respectively for 2023, 2024 and 2025 2% forecast. Zoopla predicts similarly subdued growth in house prices with a more conservative estimate than Savills of 3% in 2022.

While rates are expected to rise, Savills predicts the rise will be gradual and not have a drastic impact on affordability for UK expats and foreigners looking to purchase a UK expat or overseas mortgage mortgage in 2022. if interest rates are steeper than expected, growth will be slowed down and – depending on the type of increase – could even turn into negative growth.

As for areas of interest for UK expats and overseas national investors, these will remain the same, with the North West, Yorkshire and the Humber, and Wales leading the way in terms of growth. According to Savills, the North West, Yorkshire and Humber are projected to grow 4.5% each in 2022, while Wales, Scotland, the North East and the Midlands are projected to grow 4% each. This is no different from what we’ve seen in recent years, and it will ensure the North leads the way in areas of growth for investment.

Zoopla’s research shows a similarly optimistic picture for the Northwest and Midlands with their forecasts predicting 4% growth in the Northwest and the East and West Midlands with growth projections of 4% and 3.5% respectively. However, their predictions for Wales, Yorkshire and the Humber, the North East and Scotland are less optimistic than those predicted by Savills. Zoopla is forecasting 3% growth for Wales and Yorkshire and the Humber, with 2.5% growth for the North East and Scotland – below the UK average.

What does this mean for UK expats and overseas national investors?
“The consensus seems to be that price growth will be much less in 2022,” Stuart Marshall begins. “The strong price growth in 2021 as well as the strict criteria for the affordability of mortgages and rising interest rates mean that prices will not have that much scope to rise in the next year. The subdued real estate price growth in 2022 will help reassure many UK expats and foreign nationals who were unsure whether rising prices would deter them from the UK investment market. ‘

According to a study by Zoopla, the number of people wanting to move is incredibly high – 22% of people currently want to move compared to the usual figure of around 5%. But as the cost of living rises, mortgage rates rise, and tax burdens rise, people’s mobility is constrained, especially when the supply of homes available for sale remains low. Liquid Expat Mortgages predicts this will manifest itself in a buoyant rental market. “For those who want to move but can’t buy, renting will be the only option,” says Stuart Marshall. “This will be the case with many first-time buyers who are priced by low supply in the housing market and unable to compete with existing homeowners who have benefited from the equity they have built over the past 18 months. “

“There will also be another area of ​​the rental market dedicated to moving companies who have sold their home but cannot find another apartment. Due to low inventory and a competitive market, many who have sold their home have found themselves in a rental apartment until they find a property that suits their needs. This has created a whole new customer base for UK expats and overseas national investors who own UK real estate. In view of the forecast market development, this is a section of the rental market that will come to nothing in 2022. “

‘There is a similar consensus on property growth in the Northwest and the Midlands. These areas have been massive areas of growth over the past few years and it is not surprising that there is an optimistic forecast for their growth prospects in 2022. For existing UK expats and overseas national investors, this growth will add capital gains on your investment while making it more difficult for potential UK expats and overseas national investors to find their way into these markets. There are ways to negotiate these soaring prices, however, including buying apartments (which are growing more slowly but are gaining popularity in the rental market and are therefore very profitable), off-plan property, and student properties. Speaking with a knowledgeable broker like Liquid Expat Mortgages can help you find the best way to invest in such areas. And with the help of a growing pool of mortgages for British expats and foreign nationals, investing in the UK is becoming increasingly accessible despite the more general investment landscape. ‘

“We have to see if it’s the more optimistic or conservative picture for Wales, Yorkshire and Humber, the North East and Scotland. But regardless, the investment prospects these areas offer British expats and overseas expats remain strong. While capital growth in these areas may be less than in other areas of the UK, rental demand in these areas is sure to remain strong, ensuring that returns remain high for discerning investors. Indeed, lower than expected growth in these areas could help potential UK expats and foreign domestic investors as a mismatch between growth in the buying and renting markets helps keep investment costs low and rental yields high. ‘

“One thing is for sure, it will be another great year to invest in the UK property market.”

Liquid mortgages for expats
Unit F2, Waterfold Business Park,
Bury BL9 7BR
Phone: +44 (0) 161 871 1216
www.liquidexpatmortgages.com

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Sergio Pani
Ulysses
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