Following two years of mass change within the UK’s property market, driven by the Corona Virus, and the Stamp Duty freeze coming to an end on the 30th September 2021, what is the outlook of our property market for 2022?
Whilst we don’t possess a crystal ball, there is a general industry understanding that the property market will stabilise itself throughout 2022, creating less urgency and a smoother transaction in buying and selling.
Price Growth: After two years’ of rapid price growth, with thanks to the stamp duty freeze with deadlines causing many to miss out on the opportunity, we’re expecting a slow-down of property price growth, making home-ownership to first-time buyers more achievable.
Property Stock: Whilst some towns and counties are experiencing stock shortages, we’re excited to have already agreed the sale of 9 properties for 2022 throughout Thetford. A drop in supply can mean that the property market will stay steady throughout this year, making budgeting and expectations a lot easier to manage.
Mortgage changes: The most likely change will be to our mortgages (or rather those who will be taking our a new mortgage, or those who haven’t fixed or due for renewal. With inflation base rate already rising to 0.25%, it is expected to rise further in 2022. Should rates rise, we could almost certainly witness a rise in mortgage costs
Reduction in new mortgages: Together with a more stable property market comes a drop in mortgages offered. This is simply a sign to the calm of the property market after a rather manic two years.
First time buyer optimism: Many first time buyers have been fighting a losing battle in attempting to borrow in price-rising markets. However, affordability tests can help those otherwise unable to take a step onto the property ladder.
Mortgage terms on the rise: We remember when 20 or 25 year mortgages were quite the commitment, let alone 40 year mortgages. However, in a bid to allow more people to get into home ownership, the term length is getting longer, with interest being paid for longer.
Growth in Green Mortgages: With a focus on living a green, eco-friendly and sustainable lifestyle, banks are now increasingly supporting properties with an energy rating of B-A by offering Green Mortgages (generally new build properties).
With cheaper rates and cashback available in Green Mortgages, more people will be taking advantage of going green in their property and bank account for 2022.
If you’re hoping to make 2022 the year you make the move, be sure to contact Lawsons, Thetford’s official number 1 estate agents for a no-obligation valuation, and you too could #ListWithLawsons.