2021 has been a tumultuous year for many businesses, but the housing industry has exploded. As a result, house prices soared to an all-time high of £262,956 in August, and the characteristics that purchasers want in a home have evolved considerably.
So, what can we expect from the housing market in the future, and how can purchasers get the best possible deal?
Experts including estate agents in Ilford discuss what role it has had in driving up housing prices, and what the market will look like in 2022.
So far, what has the housing market in 2021 looked like?
Unfortunately for buyers, the tremendous demand for property fuelled by the Stamp Duty Holiday deadline has resulted in higher average property prices. According to Halifax HPI’s latest statistics, UK average house prices increased by 0.7 per cent from July to August, reaching a record high of £262,954 – a new high for the country.
The report states that this is the aftershock of government initiatives such as the Stamp Duty Holiday and First-Time Buyers scheme, which have propelled unprecedented demand in the property market. Taking all considerations into account, strong demand has made the property market smile in the face of a challenging economic year.
What can we expect from the real estate market in the coming year?
As many who are already on the property ladder and those who want to get on to the property ladder anticipate how the property market would turn out in the coming year, a slowdown in house price inflation is certainly seen. House prices including properties for sale in East London, have had price inflation that has dropped to a five-month low of 7.1 per cent, according to the latest Halifax HPI statistics.
Over the next few months, this is projected to be quite gradual. Despite the fact that the Stamp Duty Holiday has ended, buyers who saved during the shutdown will be rushing to purchase the property. The lack of in-person viewings imposed by COVID-19 regulations will not dissuade sellers from putting their homes on the market.”
In 2022, what can we expect from the real estate market?
“As supply and demand balance out, we may expect the housing market to gradually return to normal.” “Once the flood of lockdown-savers purchasing property has subsided, we should expect house price inflation to slow down as well.” There will, however, be a shift in buyer behaviour norms.
Buyers are looking to add a spare room to their requirements to turn into home offices as a result of the lockdown, which has created a ‘new normal’ where hybrid working is now an expectation. The absence of outside space in high-rise flats became an issue for many individuals during the lockdown, which has increased demand for outdoor areas.
“Generation rent is another megatrend to ponder. To take advantage of this, buy-to-let is becoming increasingly appealing, as homeowners purchase properties particularly to rent out to young professionals who want to move out of their parents’ homes but can’t afford a mortgage payment.”
Should property buyers wait till the new year to make a purchase?
“As I’ve said throughout the Stamp Duty Holiday, I would strongly advise buyers not to make any rash judgments.” Property buying is a big deal, especially in today’s economy. Therefore it’s critical that purchasers get all of their prerequisites for their dream home checked off.
“Ask the seller questions while you’re visiting properties. This contains information about the neighbourhood and the reason for the sale. For example, if a seller is in a hurry to sell, you might be able to negotiate a fantastic deal on your dream home. Meanwhile, make sure you’re conducting research on a regular basis.
Keep up with property listings by subscribing to email alerts for properties that meet your criteria and browsing the internet on a daily basis. Make sure you have a mortgage-in-principle ready to go as well, since this will expedite the process should you decide to make an offer.