It’s hardly like things have been quiet in the property market recently, what with the pandemic that’s happened recently as well as the recession and subsequent property boom.
Back in 2020 you’d have been considered a little bit mad if you’d have predicted what would happen to house prices during the lockdown almost 2 years ago.
Quite reasonably people expected the market to either drop or stagnate for a long period with estate agents and other sales avenues shut down, as well as people not allowed to leave their homes.
There was, instead, a huge surge in activity with prices rising consistently across the country at about 10% per year in 2020 and 2021 based on a year-on-year analysis.
There appears to have been a large realignment of people’s priorities when it comes to housing, such as garden size and room for a home office or working space.
There is also the fact that many landlords and investors have also been increasing their portfolio or exposure to the UK housing market. Rents have been growing quickly with demand, and this has also contributed to an unbalanced supply and demand.
A new house buying frenzy?
As we approach Christmas, which is a traditionally busy period for moving home, many are expecting a huge amount of activity as we emerge from the worst of the pandemic.
As reported by City AM, ‘The UK is readying itself to record the busiest housing market since 2007 as the pandemic has made homeowners reconsider their living situations.
Keen interest from buyers has sent house prices soaring, with the average value of a home now £240k, according to Zoopla’s House Price Index.
The pandemic has compelled many to reconsider where they’re based while competition for homes heats up amid dampened stock levels.’
This probably isn’t surprising to most given the past 18 months or so, but the activity could peak over this festive period to activity not seen in nearly 15 years.
For investors, this would indicate that it would be wise to consider bringing forward any plans you may have to buy property or expand your portfolio, given that waiting much longer may mean a significant increase in property prices.
It’s worth considering trying to have any plans completed by the end of the year if at all possible, and certainly before the spring.
Ultimately, it’s likely that the supply issues will start to even themselves out once this initial period of imbalance is over, and that should also slow the price growth a little bit. With rents also growing, however, it’s a really decent time to consider either starting in the market or expanding.
As explained by Grainne Gilmore, Zoopla’s head of research, ‘Buyer demand will remain strong moving into next year, but as the market starts to normalise in 2022, there may be an increase in the proportion of activity among movers, who are active in the market as sellers as well as buyers. This should ease the constraint in supply to some extent,’
With a strong 2022 ahead, now is the perfect time to expand your property portfolio!
