2021 was a record year in the property market, but what can we expect next year?
Over the whole of 2021, 1.5 million homes are expected to have changed hands, making it the busiest year in the property market since 2007, and in a recent survey, 22% of people currently want to move, much higher than the usual 5%. Overall, in 2021, house price growth was a staggering 6.6% due mostly because of high buyer demand outstripping the number of properties coming to the market.
Even with the end of the Stamp Duty Holiday, the property market continued to be buoyant, and this is expected to stay well into 2022. A significant proportion of sales have been to the first-time buyer’s market, which is currently running 30% higher than the five-year average. However, this increase in demand is not currently being met by properties for sale. It’s this mismatch which is causing the increase in prices.
But what does this mean for 2022? Well, firstly, expect the pandemic-induced search for more space to continue. Larger gardens, home offices, and bigger family spaces, are still a major influence moving into 2022. And, combined with the increased number of people looking, and on estate agent’s databases, expect there to be no slow down in properties being snapped up in record times.
Richard Donnell, of Zoopla, said: ‘The impact of the pandemic on the housing market has further to run but at a less frenetic pace.
‘We expect the momentum in the market to outweigh some emerging headwinds from higher living costs and the risk of higher mortgage rates.
‘The latest data shows a turning point in the rate of house price growth, which we expect to slow quickly with average UK house prices up 3% by the end of 2022.’
What does this mean for estate agents? Well, quite simply, now is not the time to take the foot off the gas. With so many buyers registered and ready to move, it is more important than ever to be winning listings and market share in your area. That’s where we come in…
The Property Collection offer innovative marketing solutions to estate agents, to help you win market share in your area.