Market Comment (February 2022)
We might be settling into 2022, but many things in the housing market remain similar to how they were in 2021. The demand for homes is still high, but there is cause for optimism regarding the supply of homes. Also, a further rise in interest rates is always worth paying attention to.
Leading property portal says buyer demand has started strongly in 2022
Buyer demand was 16% higher compared to January 2021 and 24% higher than in January 2020. Rightmove says they welcomed 218 million visits to their website and app, which is the biggest number of visitors they have received in January of any year. The number of visits increased by 3% compared to last year, and there was a 44% rise compared to the 2020 number.
NAEA Propertymark have also provided figures which indicate 2021 was the busiest year for prospective house buyers since 2004. They recorded an average of 459 potential home buyers registered per member branch. (The 2004 figure was 475 potential home buyers registered per member branch.)
Nathan Emerson, Chief Executive, Propertymark said: “2021 saw huge demand from buyers looking to change location, job, property type and size and driven by the search for a change of lifestyle. Traditionally the summer months hold a dip in demand, but 2021 defied all rules we have become accustomed to. Going into 2022 the demand has continued into January, but the number of homes being marketed still needs to pick up. There is a worry that although those looking to move are aware they can secure a good price for their home, with the rising cost of living, utilities and rising house prices, consumer confidence is starting to take a hit.”
There was an increase in the supply of homes
We shouldn’t be surprised at the demand for homes being high; this has been the case for some time. One of the biggest issues in the housing market has been a lack of homes for sale, but there is some positive news from Rightmove on this topic.
For the last two weeks of January 2022, the number of new properties listed for sale was 10% higher than the same time period in 2021.
There was also an increase in enquiries from homeowners looking for a property valuation. Valuing your home is often the initial step in selling your home, and we are more than happy to assist you with this work, so if you are thinking of selling in 2022, we can help you get the ball rolling.
Valuation requests for January 2022 were 27% higher than in January 2021, 53% higher than for January 2020 and 52% higher than in January 2019.
Tim Bannister, Rightmove’s Director of Property Data, said: “We know that January is typically one of the busiest months for agents, with both buyers and sellers aiming to start the new year with plans for a new home, but even for a January, agents are reporting this will go down as one of the busiest ever. Strong buyer demand at the beginning of the year, even higher than that of January last year, shows us that people are still evaluating their needs and where they want to live, as they consider factors such as space or returning to the office. The jump in new properties coming to the market over the last two weeks is a positive sign that there will be more choice to meet this demand during 2022, and the significant jump in valuation requests in the month compared to previous years signals that there could be even more choice to come in the near future.”
Interest rate increase will cause buyers to consider their next step
Buying a home is a massive commitment, and buyers need to feel confident and prepared about the process. The latest rise in increase rates, which moved to 0.5% as of the 3rd of February 2022, makes it more expensive to buy a home.
At the UK average property price of £276,000, a homeowner with an 80% loan on a tracker rate will pay an additional £552 a year. By itself, this is a concern, but with energy bills and your average grocery shop likely to be costlier this year, too, homeowners and buyers need to ensure they can cover their financial outgoings.
Can we help you move in 2022?
If you would like to learn more about Leytonstone, what the area has to offer, and how to achieve your goals in the local property market, we can help. To arrange an appointment, call us on 020 8558 1147 or send us an email at info@tradingplacesproperty.com.
You will find Trading Places Estate and Letting Agents at 46 Church Lane, Leytonstone, London, E11 1HE; and we look forward to assisting you.
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