31/12/2021
A REFLECTION OF 2021 AND WHAT TO EXPECT FOR 2022….
2021, has been a year of many highs and lows, from COVID-19 lockdowns to vaccination roll-out and economic recovery, of Olympic and Paralympic sporting triumph and UEFA Euro 2020 heartbreak. The property market has been phenomenally busy, soaring demand and price rises evident across all four corners of the UK and especially down in East Sussex, where Anderson Hacking has sold 95% of stock brought to market during 2021. But what do the latest forecasts say about the market in 2022 and beyond?
While many expected a quieter autumn in the housing market, official data reveals just a subtle change in autumn hues as winter approaches. September was the third busiest month on record for housing sales, following June 2021 and March 2016 (HMRC). As the final winds of the stamp duty holiday ended, sales are set to exceed 1.5 million by the end of the year (Zoopla). Although mortgage approvals in September were at their lowest since July 2020 (Bank of England), demand for property remains stronger than a year ago and the demand/supply imbalance that has epitomized the market in 2021 remains. A moderation is likely throughout the final quarter, with a national price growth of 5.8% expected for 2021 while within the areas of Rother District and Hastings there has been some of the highest price growth in the country with both areas seeing average growth of 18.8 %!! An interest rate rise is likely over the coming weeks, and while this may act as a soft brake on the market, there is little evidence it will trigger any significant price falls. Price growth in 2022 is predicted to continue over the course of 2022 by the Office for Budget Responsibility be it at a slower national rate of 3.2%.
The economy is expected to bounce back to its pre-pandemic level by the beginning of 2022 with job vacancies at a record high and unemployment is predicted to peak at just 5.2%, significantly lower than the 11.9% originally forecast. To turn Generation Rent into Generation Buy, the government confirmed a nearly £24 billion multi-year settlement for housing. Consumer confidence is back at pre-pandemic levels, although it has taken a knock in recent weeks, household budgets squeezed thanks to food and fuel price rises making inflation currently at 5.1% (ONS).
Taking a leaf out of the sales market, record demand and a shortage of properties have seen rental values rising at their strongest pace since the spring of 2017. Values are rising across all regions of the UK as HomeLet report the average monthly rent in the UK is now £1,059 (£888 excluding London). Within Rother and around Rye, we have seen reduced availability in rental properties with many properties being let to renewing tenants, as well as house sellers who have been unable to find new properties to purchase as well as many cottages being used for holiday rental market, all contributing to a shortage of stock availability. For the first time since 2016, rental values are now predicted to rise by more than 3% in 2022.
With this continued trend in growth, having a professional agent is more important than ever to provide homeowners with the correct advice to maximise their value and how to market their properties.
For a Free market appraisal of your property please contact Nigel Anderson MRCIS at Anderson Hacking Property Consultants on 01797 224852 to discuss your requirements or email [email protected]
This edition of our property magazine contains a selection of our properties available from Thursday 23rd December 2021. There are 3 properties for you to look at and one of them may be the home you're looking for.
