17 March 2022
Here's what you can expect in 2022 after the last 18 months saw an unprecedented UK property market, with Rightmove’s Tim Bannister, calling it “hectic”.
The last 18 months have been unprecedented for the UK property market, with Rightmove’s Director of Property Data, Tim Bannister, calling it “hectic”.
He has also seen changes in housing needs that have been “driven” by the Covid-19 pandemic, and says that the Stamp Duty holiday had the effect of “encouraging some movers to bring their plans forward.”
In a similar tone, the ONS reported recording a mammoth 200,000 sales in June 2021 – three times the number recorded a year earlier. Here’s what else we can expect from this year’s property market.
Last year, the extreme surge in property demand was simply not equaled by the amount of stock available. In fact, cities across Yorkshire recorded a sharp drop in the number of properties available on the market.
This has unsurprisingly carried over into 2022, and stock numbers have dropped between 31% and 47% nationwide since January 2021. Limited supply caused a steep rise in house prices last year, with Propertymark reporting the “lowest-ever supply” of houses on record. But, they also saw an incredible 80% rise in stock in January, which eased constraints on supply. This is expected to continue throughout the year.
2022 will most likely see change for tenants too. With energy bills becoming more expensive, getting value for money is more important than ever when looking for a new home. Landlords have raised fears that these increases may lead to a downfall in potential tenants across their portfolios, which has prompted 20% of UK landlords to actively look to sell property. This, however, may not be a wise move because, with companies’ work-from-home schemes coming to an end, more and more people are looking to rent inner-city properties in places like Leeds, York and other major areas of business in the county, suggesting that demand is still strong.
New, tighter legislation on landlords is another factor, which has also meant that – as reported by SimplyBusiness – only 7% of UK landlords are intent on growing their portfolios this year. There are almost 3,000,000 landlords in the UK, so if these landlords do expand their collections which already total near 4,500,000 homes, we can estimate around an extra 160,000 private rental properties to come to the rental market in 2022.
There is still some uncertainty surrounding what else to expect in Q2 of 2022 and beyond, but new rules for homeowners and landlords, particularly environmentally-focused improvements to property, mean that the standard of living across Yorkshire will go up alongside the forecasted increase in prices.
Are you a homeowner looking to buy or sell? Perhaps you’re a landlord looking to for your next investment, or tenant in search of a new property? Contact your local branch and let property professionals you can trust take care of your property journey.