How will the cost of living squeeze affect house prices in the UK?

UK house prices rose by around 10% last year. But with inflation and interest rates on the rise, can that continue in 2022?

Woman looking in an estate agent's window
The UK housing market has started 2022 in fine fettle.
(Image credit: © Darren Staples/Bloomberg via Getty Images)

2021 was a staggeringly strong year for the UK housing market: property sales were at their highest levels since 2007, and prices rose at double-digit rates (it varies depending on which survey you use, but 10% is a good rough estimate).

And all the latest surveys suggest that 2022 has started off strong too.

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John Stepek

John Stepek is a senior reporter at Bloomberg News and a former editor of MoneyWeek magazine. He graduated from Strathclyde University with a degree in psychology in 1996 and has always been fascinated by the gap between the way the market works in theory and the way it works in practice, and by how our deep-rooted instincts work against our best interests as investors.

He started out in journalism by writing articles about the specific business challenges facing family firms. In 2003, he took a job on the finance desk of Teletext, where he spent two years covering the markets and breaking financial news.

His work has been published in Families in Business, Shares magazine, Spear's Magazine, The Sunday Times, and The Spectator among others. He has also appeared as an expert commentator on BBC Radio 4's Today programme, BBC Radio Scotland, Newsnight, Daily Politics and Bloomberg. His first book, on contrarian investing, The Sceptical Investor, was released in March 2019. You can follow John on Twitter at @john_stepek.