Property

A new year, a new market?

UK house prices are rising at the fastest rate since the financial crash of 2008, but what does that mean for the UK housing market in 2022?

Halifax reported a 9.8% increase in house prices during 2021, taking the average house price in the UK to a record high of £275,000. The South West saw a 10% increase in the average price of properties in the last 12 months, compared to the previous 12 months.

Many factors fuelled the growth of the market, including the stamp duty holiday, cheap lending and an adjustment of buyers needs and priorities as a direct result of lockdown. Post-lockdown, many buyers soon realised they didn’t need to be located close to work, as they could work from home and that meant home could be somewhere altogether different.

Many “City Folk” fled for an idyllic lifestyle in the country, whilst first-time buyers took advantage of low mortgage rates and a stamp duty saving to get themselves on the property ladder. Buying requirements changed almost overnight from wanting the best possible commute to work to good outside space, a home office and highspeed internet. We also saw heightened demand for dual-occupation homes where families wanted to come together after being separated for what felt like a lifetime during the first lockdown.

There is no doubt the coronavirus pandemic has been devastating to many and incredibly disruptive to others, this negative time did however have a silver lining. People’s priorities changed not only in what a home is to them or where they can work, but a heightened community spirit, a new-found respect and admiration for the NHS and perhaps above all, the realisation that family and friends took pole position on the list of priorities.

The property market was a beneficiary of the pandemic for many of the reasons above and still stands strong today. Predictions of another crash have already been voiced but the fact of the matter is, there is still a serious lack of available property and whilst mortgage rates are low, demand strongly outweighs supply. With this in mind, I believe the market will see a steady increase throughout 2022 with values rising in every region. If you are considering a move or would simply like a current valuation of your property, then please do get in touch with us!

Luke Parle

By Luke Parle, partner, Manor & Hall Ltd.

Latest news from Debbie Fortune estate agents

FIRSTand foremost we would like to say a really big thank you to all of you who bought, sold and supported the company and our fundraising efforts in 2021.

We are delighted to have raised and donated an incredible £11,273.48 last year, which has gone to support many local events and charities such as the Harvey Hext Trust, The Chew Valley 10k (Lymphoma Research Trust), NICU supporting Bristol and Bath’s Neo-Natal units, along with Children in Need, Macmillan Cancer research and many, many other worthy causes.

So what can we expect for the housing market 2022? Well It is true to say that 2022 has already clicked into gear with lots of new applicants registering their details and plenty of interest in new stock that’s coming to the market and whilst industry experts seem to be voicing conflicting opinions of how strong the housing market will be, one thing is for sure, our wonderful region looks like taking no backward step in terms of its draw for homebuyers.

In fact, with interest rates having recently increased there is a strong argument to say that if you are either looking to upsize to your dream home, or indeed downsize and pay off the mortgage, now would seem a very sensible time to do it, thus creating high demand for properties of all types.

At Debbie Fortune Estate Agents not only do we have over 20 dedicated members of staff but we also have unrivalled access to major property platforms and media outlets to showcase your home, including websites such as RIGHTMOVE, ON THE MARKET, ZOOPLA and PRIME LOCATION.

We also feature in many local and regional publications such as The Mendip Times, The Chew Valley & Wrington Gazette, The North Somerset Times, Bristol Evening Post and Somerset Live. We also have a London presence through the Guild Property professionals of which we are proud members.

If you are considering a move in 2022 and would like a no obligation and honest market appraisal on your home please get in touch with your local office.

Neil Drejer Lisa Baines

Best Wishes Lisa Baines & Neil Drejer Directors & Co-owners

What does 2022 have in store for the residential property market?

As a manic year has drawn to a close, with house prices having increased by 10%, there are lots of factors at play that will have an influence on the housing market this year. Tom Killen looks at the predictions.

AS always, predictions for the next 12 months vary depending on who you to talk to, but there appears to be a broad consensus that while houses will continue to increase in value, the rate of growth will not be as hectic as it has been over the past 18 months.

According to Halifax, UK house prices rose by 3.4 per cent in the three months to the end of November 2021, the highest quarterly rate since 2006. Looking forward, Right Move forecasts that prices will rise in the South West by a further seven per cent in 2022.

Others are being more cautious in their national predictions. Online portal Zoopla are predicting 3 percent and it seems that most predictions are in the range of 1 – 3 percent.

One thing there does seem to be agreement on is that we’re likely to see a continued desire from people to change where they live as we return to greater normality following the pandemic.

According to a Zoopla survey, 22 per cent of households remain eager to move and are likely to seek to move as they are able to re-evaluate their requirements. The lack of houses on the market has been well publicised and has contributed to the strong growth in house values.

If more properties come to the market as confidence improves then this could lead to a slowdown in the rate of price growth but house builders are struggling to deliver the 300,000 new houses required each year to maintain the status quo.

Here in Somerset, it does seem as if the area will continue to be attractive to those moving from the South East and elsewhere who are seeking their rural idyll. We are blessed with beautiful countryside, fresh air and excellent local facilities whilst having the advantage of being within relatively easy travelling distance of London.

At Killens, we have seen properties in villages worth between £200,000 and £700,000 in most demand but, to be honest, all property is wanted and sales are being achieved either off market or very quickly after a property is launched.

It does seem as if the Rightmove predictions may prove to be the closest to the mark.