2021 has been one of the busiest years for the housing market in over a decade. According to Zoopla, around 1.5 million homes are expected to change hands in 2021 – the largest figure since 2007. Low mortgage rates and Stamp Duty holiday and people rethinking home needs and wants in pandemic-era have all been factors.
2022 what can we expect?
Zoopla Research recently conducted a survey of UK households which found that 22% remain ‘eager’ or ‘very eager to move home in the next 18 months as a direct result of the pandemic. Hybrid working is very much here to stay so people are looking further afield being not so fixed to a commute, and with rising property prices people have more equity which all could feed into the desire to move into 2022. However, there are also wider economic and financial changes ahead.
Homebuyers have become used to low mortgage rates which have ranged between 2% and 3% since 2015. The Bank of England voted recently to keep rates the same but also signalled a rate rise may be on the horizon sooner rather than later.The rising cost of living, combined with an expectation that mortgage rates and taxes will rise next year, will impact affordability. House price growth is expected to end 2022 at 3%, with growth likely to be strongest in the East Midlands and North West and weakest in London.
What might this mean for you?
The market is still fast-moving with negligible effects seen in the last few months and is not expected to start slowing down until well into 2022. So you should be to be prepared to move quickly if you see somewhere you like and go prepared to any viewings with a mortgage offer agreed in principle ready. If you think of a first property as just that, a starter home, you may find you have more choice and less pressure if you look for a flat as a lot of potential buyers in 2021 / 22 are looking for more space, particularly a garden.
If you’re thinking of moving, it is still a great time to put your home on the market as demand from potential buyers is continuing to outstrip supply. However on the flip side this also then makes it tricky to find and be successful in finding your next home. The key is to research, as much as you can before listing your current property and talk to local estate agents to find out how fast the market is moving in your area. A lot of buyers in the present climate are opting to have an offer accepted on a property before they list their current home.
How can we help?
Thinking of selling? Use our instant valuation tool to get an estimate of your property’s value, or you can use the helpful Zoopla tool to look at what properties sold for in your area, as well as track properties you're interested in.
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Whether you are thinking of buying or selling, don’t hesitate to get in touch with us for expert and local market advice.