23 Nov What will 2022 look like in the housing market
As we head towards the end of the year, we wanted to take a look at how the property market is shaping up for 2022. As the leading estate agent in Colnbrook and the surrounding areas, it’s important for us to keep an eye out on what is happening in the wider market in order to best advise our clients.
This year has been a record year for sales; the government stimulating the property market with a combination of help to buy, stamp duty holiday and new mortgage guarantee schemes have led to more than 1.5 million transactions across the UK.
If you are looking to buy, sell or rent a home in Colnbrook, make sure you call us on 01753 683000 or email us.
A record year
According to the House Price Index, the end of the stamp duty holiday failed to dampen demand from potential buyers, which is up 30% on the five-year average. Thanks to the tapering off of the tax holiday, the dreaded ‘cliff edge’ never happened and people were able to get their transactions across the line in time to make savings. Those who didn’t complete in time knew they wouldn’t ahead of the end of the tax and so, disappointment was minimised. We expect this pandemic-induced boom to continue into the new year.
A major contributing factor to the boom has been the Covid-19 pandemic and the subsequent lockdowns. We spent the best part of a year being confined to our homes and this gave people the opportunity to reassess their living situations and their priorities.
By the end of 2021, homes collectively worth £473 billion will have been sold; while we think the market will remain buoyant until the end of the year, the level of activity is expected to slow next year as the market faces the challenge of fully recovering from the pandemic and the resulting economic uncertainty.
First-time buyers
First-time buyers continue to come to market. Government schemes encouraging this segment of buyers to the market has meant that demand from potential buyers is well above the five-year average and looks to remain into 2022.
Mortgage availability has assisted the rise in demand; however, this demand has not been met with adequate supply as the number of homes coming to market and listed for sale is 38% lower than the aforementioned five-year average. This gulf in supply and demand is likely to continue to push house prices up into the new year.
The housing market in 2022
Without doubt, next year will be tumultuous in the property sector. The demand for more space will continue and the exodus from cities out to the commuter belt will continue to drive prices up in areas with good travel connections. As companies change to a more remote way of working, proximity to the office is lower on the priority list for many city workers – this should fuel house price growth well into 2022.
While it may seem like 2022 is looking fairly positive on the whole, there are some challenges that are on the horizon. The cost of living is rising, combine this with a potential mortgage rate increase and rise in tax rates, and issues with affordability may come to the fore. So it is important that you plan any property decisions carefully.
What could this mean for you?
If you are a first-time buyer, the market looks like it’ll remain buoyant well into 2022. This means you may need to move fast when you see somewhere you like – competition for properties will still be high in the new year. We recommend that you have a mortgage offer agreed in principle before you start house hunting.
The demand for properties is high, so if you’re thinking of moving, now is a great time to put your home on the market. Unfortunately, the selling part is easy, the same supply and demand issue that benefits you as a vendor will impact you as a buyer. Do some research; if the area you are hoping to move to is fast-moving, you may want to have accepted an offer on your home before house hunting – that way you can react quickly.
Get in touch
If you are looking to buy or sell a property in and around the Colnbrook area, we are the leading independent estate agents in Colnbrook and are location experts. So, contact us on 01753 683000 or email us. You can also follow us on Facebook, LinkedIn, and Instagram.