Market Comment (July 2022)
In this blog post, you will find information on the UK housing market as it stands in July 2022. This includes stats on property demand, and how the market is moving. This is a month where the temperature has risen considerably, but the UK housing market has been hot for some time, and records have been broken for months in a row.
So, whether you are considering purchasing a property in the near future or are just interested in keeping up to date with the current market conditions, read on for all you need to know!
Buyer demand is higher than pre-pandemic levels
Rightmove also states property buyer demand is 26% higher than it was in 2019, but is 7% down compared to this time last year. This isn’t a surprise, the circumstances of last summer and this are markedly different, and the 2022 figures are still positive in the market.
Tim Bannister, Rightmove, comments: “Having more new sellers this month is a win-win for the market, as these sellers will likely achieve good prices for their homes given the sixth asking price record in a row that we’ve now seen, which may help to explain the increase in new stock coming to market over the last year. For those looking to buy, it means more choice, and a slight easing in competition against other buyers while the market is still moving very quickly. In the current fast-changing economic climate, those looking to buy who find a suitable home they can afford may choose to act now rather than wait. While more choice is welcome news, the number of homes available remains well below the more normal levels of 2019 and is unable to satisfy the continued high demand that we’re seeing.”
Tim Bannister also said; “Though a softening in demand is moving the market from a boil to a simmer, it remains 26% up on 2019. With such an imbalance remaining between supply and demand, prices look underpinned, and we would therefore only expect typical smaller seasonal month-on-month falls, rather than more significant price falls in the second half of the year. This has led to us revising our annual price growth prediction for the end of the year from 5% growth to 7%, although this would still mark a slowing from the 9.3% seen this month.”
Understandable drop in house movers in first half of 2022
Given the current challenges in the economy, it shouldn’t be a shock to learn there has been a fall in the number of home movers in the first half of 2022 compared to 2021.
According to Halifax, there has been a fall of 35% when comparing 2022 moves with 2021 for the first six months of the year. This is a big change when you consider the increase of 133% between 2020 and 2021.
However, there are big factors to consider:
• In the opening half of 2020, the property market was closed down for a few months, so the number of moves was always likely to move
• The stamp duty holiday was applicable in the opening half of 2021, increasing the number of property moves
• The challenging cost of living increases in 2022 has dipped demand and movement
Andrew Asaam, homes director at Halifax, comments on the findings: “The number of home movers so far this year is lower than the record high set last year: this was not unexpected, and the housing market has remained buoyant in 2022 so far. The number of people moving home during the in the first six months of the year was above pre-pandemic levels and is, other than 2021, the busiest start to the year for home moves since 2008.”
The lettings market is very buoyant due to a lack of supply
The number of available rental properties remains low, which is making life difficult for those seeking a new home. We hear it the voices of those registering with us, and the difficulties they face simply trying to get a viewing slot for those that do become available.
Each year a number of landlords leave the private rented sector, whether as part of a pre-determined exit strategy, or due to ever-increasing rules and regulations, many of which carry an extra cost one way or another; and certainly, in our local market the lack of new landlords coming in to replace those leaving the sector is concern. The numbers simply don’t add up for many, and so supply is unable to service the demand; a problem that looks set to get worse.
It's fair to say that alongside this, landlords are facing rising interest rates leading to more expensive mortgage deals at the point of re-mortgaging, so rent increases are being influenced by a number of factors.
Can we help?
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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