{"id":3745,"date":"2021-12-22T15:20:11","date_gmt":"2021-12-22T15:20:11","guid":{"rendered":"https:\/\/new.contentdeployment.co.uk\/tomd\/?p=3745"},"modified":"2021-12-22T15:20:12","modified_gmt":"2021-12-22T15:20:12","slug":"residential-property-review-december-2021","status":"publish","type":"post","link":"https:\/\/new.contentdeployment.co.uk\/tomd\/2021\/12\/22\/residential-property-review-december-2021\/","title":{"rendered":"Residential Property Review \u2013 December 2021"},"content":{"rendered":"
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Slowing activity but demand remains high<\/strong><\/p>\n<\/div>\n\n

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New buyer enquiries rose slightly in the Royal\nInstitution of Chartered Surveyors\u2019 (RICS) November survey, with a net balance\nof +13%, while new instructions fell for the eighth successive month to -18%.<\/strong><\/p>\n<\/div>\n\n

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The end of the Stamp Duty holiday, among other factors, has\ncontributed to a dip in housing market activity, with Q3 recording a 26% fall\nin purchases compared to the previous quarter, according to UK Finance data.\nDespite this, Q3 purchases remained 10% higher than their 2019 equivalent.<\/p>\n<\/div>\n\n

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The largest growth in the recent data came in the rental\nmarket, with rent increases at a 13-year high. Average rent, excluding London,\nnow stands at \u00a3809 per month, according to Zoopla\u2019s latest Rental Market\nReport.<\/p>\n<\/div>\n\n

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Tenant demand returned a net balance of +48% in November and\nRICS foresees further upward movement in rent prices because of this demand and\na shortage of rental properties. The rental market is currently strongest in\nthe central zones of major cities, where demand is twice as high as in outer\nzones.<\/p>\n<\/div>\n\n

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Race for space? That\u2019s so 2020<\/strong><\/p>\n<\/div>\n\n

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Growth in the price of flats is now outpacing growth in\nthe price of detached houses, Halifax\u2019s latest House Price Index has revealed, a\nsign that the \u2018race for space\u2019<\/em> that characterised the 2020 housing\nmarket could be fizzling out.<\/strong><\/p>\n<\/div>\n\n

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At the height of the lockdowns in 2020, demand for space\nsoared as people worked from home and the government introduced the Stamp Duty\nholiday. Now, however, this trend seems to be reversing, as city centres become\nmore appealing again: in November, flats were selling 10.8% higher\nyear-on-year, compared to the 6.6% average rise in the price of detached\nhouses.<\/p>\n<\/div>\n\n

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Tim Bannister of Rightmove commented, \u201cA shift in demand\nfrom bigger houses to flats has emerged as more of society has opened up again\nand people have assessed where they will work throughout the week, with many\nnow considering a move closer to a city than further out.\u201d<\/em><\/p>\n<\/div>\n\n

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Unrelenting demand and uncertainty for the year ahead<\/strong><\/p>\n<\/div>\n\n

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House prices will soar ever higher in 2022, according to\nRightmove, as sustained buyer demand and historically low levels of available\nproperty endure.<\/strong><\/p>\n<\/div>\n\n

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Several uncertainties continue to loom over the housing\nmarket, including the threat posed by the Omicron variant, which could have a\nsignificant impact on supply and demand, as well as playing a role in any\npossible rise to the Bank of England\u2019s base rate.<\/p>\n<\/div>\n\n

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Even so, the latest analysis from Rightmove predicts that\nhouse prices will rise nationwide in 2022 by 5%. Despite an expected increase\nin listings next year, these will likely still struggle to keep pace with\npersistent demand.<\/p>\n<\/div>\n\n

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According to Rightmove\u2019s Tim Bannister, the \u201cimbalance between supply and demand has resulted in buyer demand per available property being at near-record highs, suggesting that the 2021 scenario of multiple buyer bids on a high proportion of properties when they come to market is set to continue in the new year.\u201d<\/em><\/p>\n<\/div>\n\n

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It is important to take professional advice before making any\ndecision relating to your personal finances. Information within this document\nis based on our current understanding and can be subject to change without\nnotice and the accuracy and completeness of the information cannot be\nguaranteed. It does not provide individual tailored investment advice and is\nfor guidance only. Some rules may vary in different parts of the UK. We cannot\nassume legal liability for any errors or omissions it might contain. Levels and\nbases of, and reliefs from, taxation are those currently applying or proposed\nand are subject to change; their value depends on the individual circumstances\nof the investor. No part of this document may be reproduced in any manner\nwithout prior permission.<\/em><\/strong><\/p>\n<\/div>","protected":false},"excerpt":{"rendered":"

Slowing activity but demand remains high New buyer enquiries rose slightly in the Royal Institution of Chartered Surveyors\u2019 (RICS) November survey, with a net balance of +13%, while new instructions fell for the eighth successive month to -18%. The end of the Stamp Duty holiday, among other factors, has contributed to a dip in housing […]<\/p>\n","protected":false},"author":12,"featured_media":3743,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[32,37],"tags":[],"hd_content_source":[],"_links":{"self":[{"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/posts\/3745"}],"collection":[{"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/users\/12"}],"replies":[{"embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/comments?post=3745"}],"version-history":[{"count":1,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/posts\/3745\/revisions"}],"predecessor-version":[{"id":3747,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/posts\/3745\/revisions\/3747"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/media\/3743"}],"wp:attachment":[{"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/media?parent=3745"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/categories?post=3745"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/tags?post=3745"},{"taxonomy":"hd_content_source","embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/hd_content_source?post=3745"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}