For a removal company like us, the housing market in 2021 was really something! Which, as our customers, we’re sure you are aware. The Stamp Duty Holiday was the biggest reason for the market madness. However, other factors meant that not everyone was rushing to meet the deadlines but still wanted to move. This meant that we found market to be consistently busy over the course of 2021.
So, now we are settling into a new year we can’t help but wonder:
- Are people still desperate to move?
- Have all the ‘good’ properties been taken?
- Will any new properties come onto the market?
- What will happen to the prices?
- What about the rental housing market?
- Will there be a crash?
The reality is that it is impossible to know but we have done some research to find out what the housing market is looking like for the start of 2022.
Estate Agent Stock
Latest research suggests that there are on average 29 potential buyers showing an interest in each property that comes to market. Of course, not every person that shows interest will want to book a viewing. Or even put in an offer. However, this does suggest a consistent shortage of properties. In fact, Iain McKenzie, CEO of The Guild of Property Professionals, stated that “portfolios are at historic lows, with many branches having a dozen or fewer properties to sell, and there is no sign of this situation changing”.
Housing Market Prices
If you are looking to move, what might this shortage of properties mean for you? Well, it’s should come as no surprise that increased demand is continuing to push prices higher. With 69% of estate agents reporting a rise in house prices in December 2021 with 67% anticipating prices to further increase over the course of this year.
The same can be said for the rental market. Simon Rubinsohn, chief economist at RICS said, “Rents similarly seem likely to be on an upward course over the next twelve months despite more broader cost of living challenges emerging on the back of higher energy cost.”
If you are looking to sell your property, it seems like now is the a time to do so. This is because the wider economy always has an effect on the property market.
Property expert Lucy Pendleton said “this is the same month that wages dropped in real terms for the first time in over a year [and] mortgage approvals aren’t outstripping historic averages any more.” She also states that first time buyers in particular might find getting on the property ladder more of a struggle due to inflation rises. However, this might have detrimental impact to all home buyers. Lucy concludes by saying “If first-time buyer affordability is stretched any further, this will also have significant ramifications for the wider market over the coming year.
To sum up, then, it is good news for our customers looking to put their property on their market. However, with a shortage of stock combined with economic uncertainty, it is unclear how easy they may find purchasing a new property. Or what sort of properties they may find available.
If you are currently selling or purchasing a new property, please do get in touch if you would like any information about your move. One of our helpful advisors is on hand to provide impartial guidance and advice.