Property Market with Privee.
There is no doubting that the last couple of years has put a strain on a lot of people in the UK in various different ways. So how does the property market look for 2022 and what impact has the pandemic had on the market?
Surprisingly, UK house prices rose by more than 10% in 2021, which is the fastest growth rate in 15 years. The average UK home price hit a record high of £254,822 in December 2021, which is up nearly £24,000 over the year (according to date published by Nationwide, the UK’s largest building society). The rise in house prices has been due to a number of factors; which includes the stamp duty holiday (which ended in September 2021), the ability for a lot of buyers to save money during the pandemic with the lack of socializing and combined with a lot of buyers moving back to family, allowed buyers to save largest deposits and turn to buying over renting. In addition, interest rates have remained at historic lows, even with the recent slight increases, making a mortgage much more appealing.
Will we see the same for 2022?
As the economy continues to bounce back in the aftermath of Covid restrictions being relaxed, it is likely that lenders will relax affordability for lending criteria. This too will be encouraging for buyers, especially first time buyers who are looking to exchange paying someone else’s mortgage, for their own.
Whilst the Stamp Duty Holiday is a thing of the past (for now), First Time Buyers can also take advantage of the Stamp Duty Land Tax relief, which if the property is under £300,000, will not need to pay any SDLT and between £300,000 and £500,000 will pay SDLT at 5% on the amount of the purchase price in excess of £300,000, a reduction of £5000 compared to the amount of SDLT they would have previously paid. As a caveat, first time buyers purchasing a property for more than £500,000 will not be entitled to any relief and will pay SDLT at the normal rates.
Working from home has become the norm for a lot of workers, which is especially evident in London. Companies have looked at what this means for the amount of office space they require, with a large proportion of their workforce able to work remotely. With the relaxation of Covid restrictions, long term, hybrid working seems to be the preferred method for a lot of people and companies. This requires people’s living arrangements to cater for the additional space for desks and workstations.. Therefore, a study, additional bedroom or large enough living space is an essential element of the property when making a decision, more so than ever. Another important tick box which has become increasingly important, is the need for outside space. Whether this be a garden or a balcony, having outdoor space is another important factor that has come to the forefront of buyers demands.
It is still early in 2022, however Rightmove are reporting in February a rise of 16% in property enquiries compared to February 2021, so it appears 2022 could be continuing the trend we saw in 2021. Having said that, some forecasters are expecting the curve to soften slightly, with the rise in oil prices and household bills becoming apparent.
Time will tell, but the lack of supply vs demand is always an indicator of whether there will be strong growth in the market. It appears the property market is going to remain strong and competitive throughout 2022 and prices to continue to grow month on month. Many vendors are experiencing multiple offers on their property, making it even more competitive and achieving higher prices for their property. Remember, it is all relevant if you are looking at selling and buying on. Estate Agents are reporting that those buyers that are missing out, are those that aren’t in a position to proceed quickly. Having your Privee Passport and Privee Pro in your corner will definitely give you the edge when trying to buy in a competitive market.
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