2022 Property Review: Complete Insight into House Prices, Interest Rates & Global Market Trends
Updated: December 20, 2022
This 2022 Property Review analyses how rising inflation, interest rates, and shifting global demand impacted the UK and international property markets. For investors, expats, and high-net-worth individuals, the year highlighted volatility but also presented rare opportunities for strategic acquisition.
UK Market Overview in the 2022 Property Review
UK house prices cooled toward the end of 2022 after several years of uninterrupted growth. Nationwide and Halifax data recorded three monthly declines in the final quarter, including the steepest drop since early 2021. The average property price ended the year at £292,598.
Yet the correction needs perspective: on an annual basis, prices still rose 6.8%, with average values up by over £22,000 during 2022 and nearly £60,000 (+25.7%) since 2019. London continued to outperform, with average property prices at £544,113, significantly above the England average. Brent (+5.5%), Kensington & Chelsea (+1.5%), and Haringey (+3.0%) saw strong gains for prime buyers.
Despite macro headwinds, the capital remains a safe haven for UHNWIs and international investors. Our case studies highlight transactions we structured for overseas clients entering the London market in 2022.
International Property Prices: A Global Perspective
The 2022 Property Review extends beyond the UK, as global residential markets saw inflation-adjusted growth of 4.6% and nominal gains of over 11%.
- Algarve (Portugal): Europe’s most popular second-home market grew 5.3% in 2022, with values around €2,237/m².
- Paris (France): Luxury Parisian apartments achieved record sales, led by US investors benefitting from dollar strength.
- French Riviera (France): Although historically reliable, a 9% slowdown was reported after large pandemic gains.
- Miami (Florida): Prices surged 27.4% with global capital inflows into prime oceanfront real estate.
- Swiss Alps (Switzerland): Zermatt and St. Moritz remain unrivalled for luxury investment in alpine markets.
Each hotspot demonstrated unique regional performance, reinforcing the value of diversification for global investors.
Interest Rates and Inflation: The Defining Theme of 2022
The Bank of England raised its base rate from 0.25% to 3.5% by year’s end, marking the steepest tightening cycle in over a decade. Inflation peaked at 11.1% in October 2022 – a 41-year high. Although energy costs drove the majority of this spike, inflation eased marginally to 10.7% in November. Some analysts believe the peak has passed.
Compared with pre-2008 cycles, borrowing costs remain historically low, especially for HNWI borrowers leveraging private banking relationships. Our team structured bespoke solutions to preserve liquidity and optimise tax efficiency amid volatile conditions.
Key Mortgage and Property Trends in 2022
The 2022 Property Review showcased distinct borrowing and investment patterns:
- Buy-to-Let: Consistent demand, supported by both rental yield strategies and long-term wealth preservation.
- Commercial Property: Investor confidence recovered in 2022, with demand returning for office and mixed-use developments.
- Development Finance: Demand for conversions accelerated, spurred by regulatory relaxation for residential repurposing.
Prime Central London assets, averaging £3.34M, remained in demand. Hamptons data shows foreign nationals accounted for nearly 50% of prime acquisitions. Strong US demand reflected the currency advantage.
Where Prime London Borrowers Reside
Articus’ data revealed UK-based investors form the majority of prime mortgage enquiries. The US was the second largest share, driven by the sterling’s relative weakness. Other notable enquiries came from Asia and the Middle East. For global clients, structuring finance with the right partners remains critical.
For further reading, please refer to our Expat & Foreign National Mortgage Guide.
Final Thoughts: Opportunity Amid Volatility
Our 2022 Property Review highlights that, while debt costs rose and markets cooled, banks remained eager to lend and flexibility in structuring bespoke finance improved. For UHNWI clients, volatility in property markets often creates the best acquisition windows.
At Articus Finance, we discreetly guide clients through complex transactions across global markets. Whether expanding overseas or consolidating UK investments, our proven expertise ensures the most advantageous outcomes.
Explore our case studies or contact us for a confidential consultation.