New year, new rules: what to expect from 2022
A new year celebrates new beginnings, and for many people, there’s no better ‘fresh start’ than finding a new place to live.
Whether it’s a bold move to discover a different city, a first step on the property ladder with your partner, or time to start a family and find a bigger more practical place to call home, 2022 will mark the start of a new property chapter for countless people.
But whilst the future can never be fully predicted (do twins run in the family?!), it pays to be prepared and to furnish yourself with as much information as possible. Which, when it comes to property sales, means being fully aware of what to expect from the market.
To help, the team at GD Legal, home to leading conveyancing solicitors, share the latest market insights revealed by property website, Rightmove. Highlighting everything you need to know if you’re planning to buy or sell property in 2022.
What 2022 has in store
· A ‘closer to normal’ market
As the pandemic unfolded back in 2020, few people predicted we would still be feeling its effects nearly 2 years on, yet the repercussions of Covid-19 continue to be felt.
With lockdown restrictions, job losses and business failures, the housing market initially looked set to stall – but then came the furlough scheme, a holiday from Stamp Duty and the introduction of a 95% mortgage guarantee scheme. Which – combined with the rise of home working, the realisation that living close to the office was no longer strictly necessary, and our living space taking on an increased priority – meant that the market sprang back into somewhat frenzied action.
Finally, however, it looks like a return to normality is on the cards. With December 2021 valuation requests up 19% on the previous year, Rightmove is predicting a more stable balance of supply and demand for the start of 2022 and a gradual return to normal as the year progresses. Great news for any nervous movers who have been put off by the hectic market.
· A great year for sellers
Buyer demand in 2021 remained up compared to 2020 and 2019. And with property sales seeing their highest levels since 2007, experts anticipate the demand for homes will continue well into 2022. So there’s no need to worry about your property not selling – the chances of bagging a buyer are high!
Combine this with the fact that average asking prices are predicted to rise by 5%, and sellers are in an excellent position.
· A rise in interest rates
An increase in interest rates is predicted in the coming months but as Rightmove’s Director of Property Data, Tim Bannister, points out, this isn’t all bad news: “…. Whilst a rise is often regarded as unhelpful to the market, a slowing of the fast pace of sales, and associated pace of price rises, will help the return to more normality that will suit many movers.”
· More choice
Struggled to find a property that ticks all your boxes in 2021? Then now is the perfect time to reignite your search.
As people resolve to take action at the start of a new year, these early months of 2022 are likely to see an increase in properties going up for sale. Add to this the fact that previously reluctant sellers are more likely to be tempted to the market as it stabilises, and you’re guaranteed to have more choice and a higher chance of finding your forever home.
· Bigger demand for flats
As ‘normality’ slowly creeps back into all areas of life, it’s likely there will also be an increase in the demand for city-centre homes.
Homeworking, coupled with an intense focus on outdoor space and gardens, has dominated the past 18 months – but whilst these factors remain important, the pull of convenient city life is also enjoying a resurgence.
Get set for 2022
The housing market may be a fickle beast, but one factor that doesn’t change? The need for a great property solicitor.
And that’s where GD Legal comes in. As experienced conveyancing solicitors, we can offer you expert advice and clear guidance to help make sure 2022 is the year you achieve your property goals. And it’s never too early to set things in motion – the more prepared you are, the more chance you have of a successful sale or purchase.