2021 UK Property Market Review
UK house prices increased once again in December raising the annual growth rate above 10%, the highest in 15 years. Prices are now 16% above pre-pandemic levels, something very few economists predicted as lockdown and travel restrictions were implemented. Experts highlight that the stamp duty holiday and low interest rates were major contributors to record numbers of transactions which exceeded those of 2007. They acknowledge that the absence of the stamp duty concession and rising interest rates in 2022 will see growth slowing but point to the dramatic supply demand gap with new builds which should ensure steady growth in the coming years.
Posted by: Kelvin Tayfield, Sun, Jan 2nd 2022
UK Build-to-Rent Boom to Continue
Whilst predictions are for a cooling of the spectacular house price growth of 2021, investment in the build-to-rent sector is set to continue to grow fueled by the ongoing housing shortage. Planned investment by heavy weights John Lewis, Lloyd’s and Macquarie have highlighted the attractiveness of this sector as they seek to diversify their portfolios. In terms of locations likely to see the strongest activity, the North West is expected to maintain its strong growth trajectory according to most analysts.
Posted by: Kelvin Tayfield, Sat, Dec 18th 2021
UK Race for Space Could Be Over
Whilst house prices during the lockdown period outstripped those of flats, the reduced work-from-home hours seems to have resulted in a reversal of that trend according to mortgage lender Halifax. In November prices for flats were up 10.8% year on year whilst houses saw a 6.6% increase. Property website Rightmove have also seen a reversal based on searches during the same month, stating that must haves for prospective buyers include balconies, shared gardens and on-site facilities. This is playing into the hands of the major developers who usually offer such facilities with those having communal work spaces proving particularly popular.
Posted by: Kelvin Tayfield, Sat, Dec 11th 2021
Inflation Risk Not Affecting UK Property Prices
UK housing prices increased by 0.9% in November, up from October’s figure of 0.7% which brought the annual increase to 10% according to leading building society Nationwide. The number of housing transactions has already exceeding those of the entire 2020 and are set to exceed 2007’s record number. Whilst inflation and the resultant expectation of rising interest rates will have a cooling effect on the market, leading property group Rightmove has joined other experts in predicted robust growth in 2022. The company expects an average growth of 5% next year with some areas expected to record 7% increases.
Posted by: Kelvin Tayfield, Sat, Dec 4th 2021
London House Prices to Rise 25% by 2026
According to the latest forecasts released by JLL, London house prices are expected to experience significant growth over the next five years as office workers seek to live close to their places of work again. The real estate company expects the highest increase in 2022 with Greater London expected to see a 6% growth whilst Prime Central London (PCL) should lead the way at 7.5%. This view is supported by fellow specialist Savills who predict an 8% rise for PCL next year. The forecasts are against a backdrop of a continuing supply shortage with only 16,000 new homes to be built next year, a number well short of Greater London Authority’s annual target of 52,000.
Posted by: Kelvin Tayfield, Sat, Nov 27th 2021