April 2022 Property Market Report
As we enter the spring, the traditional spring market doesn’t quite feel that way yet! The acute shortage of stock may be starting to ease slightly, which may go some way towards tempering the 14.3% annual house price growth reported by the Nationwide. Although this sounds impressive if you are a homeowner, it is clearly unsustainable, and ultimately is all relative anyway.
In fact, if you are upgrading in a rising market you really should act very quickly as your higher cost purchase will have risen more than your lower cost sale in cash terms.
Historically, the property market has been supported by general economic confidence. However, the uncertainty prompted by the terrible situation in Ukraine, along with higher interest rates, rising inflation, substantial rises in the cost of our energy, and inport/export difficulties – all these mean that this strong sellers’ market is likely to moderate as buyers re-address their budgets as we approach the summer – although there is no sign of this yet as far as we can see.
This is good news if it means that more stock becomes available, providing more choice for those many buyers. With a greater selection of properties for sale, sellers who have been sitting on the fence are more likely to come to market and things will settle down – real people moving house for real reasons without the worry of missing the market.
A word about landlords, who will be pleased that across the country rents increased by 4% during February and March, with a record average rent now standing at £1097 and void periods shrinking by 11% (Goodlord). Any landlord who wanted to sell due to the less favourable tax regime has probably now done so and for the first time in six years, more landlords are buying than they are selling. (Hamptons)
All this is pointing to action! Prices are not going to fall any time soon, so why not take advantage of this spring market and a renewed sense of activity. Why not call us in for a chat about how we can help you harness all this to your advantage. You might be pleasantly surprised!