The latest trends in the UK’s housing market with a detailed focus on the Meller Braggins local market area of Knutsford, Altrincham and Wilmslow.
The average property has increased in value in the region of £24,000 over the past year according to both the Nationwide and Halifax. Nationwide report the average price of a property is now 16% higher than before the COVID-19 pandemic.
After a record-breaking 2021, the rate of annual property price growth is anticipated to moderate over the course of 2022. The Office For Budget Responsibility report price growth is anticipated however in each of the next five years.
Rightmove reports the average price of a property brought to market in December fell by 0.7% (-£2,234), this is on par with the usual dip witnessed at this time of the year.
EconomyPrior to the onset of the Omicron COVID-19 variant, the UK had bounced back to just 0.5% below its pre-pandemic level. Output from the service sector decreased significantly in December however to its lowest level since February 2021.
The Bank of England warn inflation could rise as high as 6% during 2022 before falling back in the latter half of the year. Inflation rose to 5.1% in November, its highest rate in 10 years, prompting a rise in interest rates to 0.25%.
Markets are predicting a further interest rate rise to 0.5% in late Spring with rates increasing to 1% by the end of 2022. However, the impact of the Omicron variant on the UK economy is as yet unknown.
A lack of new instructions to the market is restricting sales activity. Rightmove report 70% of properties advertised in December were marked sold subject to contract, this compares to just 20% back in 2012.
Sales volumes of 1.2 million are predicted for 2022, in line with more 'normal' market conditions. This follows volumes in 2021 being at their highest level since the global financial crisis. Rightmove report a surge in new sellers coming to market on Boxing Day, volumes up 21% year-on-year.
Over 15,000 sales have taken place of property priced £1 million or more across England and Wales to date in 2021, the highest number ever recorded. For the first time, more than half of these sales have been outside of the capital.
Close to 67,000 mortgages were approved in November, with the exception of 2020, this was the highest November total since 2016 (Bank of England). Mortgage approvals from January - November are over 21% higher than the long term average (2013-2020).
Rightmove have reported their "busiest ever festive period for home-mover activity", with buyer demand up 23% compared to the same period last year. Boxing day was the portal's busiest ever for website and app traffic. Requests for home moving valuations were at their highest on 30th December since May 2021
First-time buyers are currently a key segment of the market. FTB numbers are estimated to have exceeded 400,000 during 2021 for the first time since 2008 according to an analysis by the Yorkshire Building Society.
Homelet report at £1,060 the average monthly rent in the UK is 8.3% higher than a year ago, the average monthly rent in excluding London the average UK rent is £893, a 6.6% increase year-on-year. Rental growth is forecast for 2022.
Respondents to the latest RICS sentiment survey now project rents to rise by close to 4% over the next year, with respondents foreseeing rental growth over the next five years averaging close to 5% per annum.
At £4.1 billion, the UK's Build-to-Rent sector received a record amount of investment in 2021, investment up 14% on 2020 (the previous record) according to the CBRE. Investment has been fairly evenly split between London and the regions.