{"id":4184,"date":"2022-01-21T08:41:32","date_gmt":"2022-01-21T08:41:32","guid":{"rendered":"https:\/\/new.contentdeployment.co.uk\/tomd\/?p=4184"},"modified":"2022-01-25T16:19:38","modified_gmt":"2022-01-25T16:19:38","slug":"residential-property-review-january-2022","status":"publish","type":"post","link":"https:\/\/new.contentdeployment.co.uk\/tomd\/2022\/01\/21\/residential-property-review-january-2022\/","title":{"rendered":"Residential Property Review – January 2022"},"content":{"rendered":"
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Strong end to record-breaking year \u2013 but uncertainty\nahead<\/strong><\/p>\n<\/div>\n\n

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As Big Ben\u2019s bongs rang out, a record-breaking year for\nthe residential housing market gave way to an uncertain New Year.<\/strong><\/p>\n<\/div>\n\n

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Completed transactions to November totalled 1.36 million,\nwhich means the number of homes sold in 2021 will reach levels not seen since\nbefore the global financial crisis. Persistently high demand and constrained\nsupply have led buyers to snap up available properties; the average number of\nviewings held before an offer was accepted was just 13 in November 2021,\naccording to Knight Frank, the lowest level since December 2020.<\/p>\n<\/div>\n\n

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Savills expects this heightened activity to drop off\nslightly in 2022. The first few months are likely to be busy given that sales\nagreed remained at elevated levels in November, according to TwentyCi. However,\nBank of England data shows that mortgage approvals have returned to\npre-pandemic levels, while the Institution for Chartered Surveyors data shows\nthat supply has been falling since April 2021; a combination of factors which\nexperts suggest could lead to leaner months ahead.<\/p>\n<\/div>\n\n

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Government reacts to cladding crisis<\/strong><\/p>\n<\/div>\n\n

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The government has announced its long-awaited cladding\nplans in the form of a four-point plan and a three-word slogan, \u2018Developers\nMust Pay\u2019.<\/em><\/strong><\/p>\n<\/div>\n\n

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The plan includes:<\/p>\n<\/div>\n\n

\n
  1. Starting the next phase of the Building Safety\nFund to take dangerous cladding off high-rise buildings.<\/li>
  2. Pursuing companies at fault to make them fix the\nbuildings they built.<\/li>
  3. Indemnifying building assessors from being sued\nand withdrawing old government advice on declaring buildings unsafe.<\/li>
  4. Promising leaseholders living in their own flats\nthat they will face no bills for fixing unsafe cladding.<\/li><\/ol>\n<\/div>\n\n
    \n

    The government has warned developers that if industry fails\nto take responsibility, it will \u2018impose a solution in law.\u2019<\/em><\/p>\n<\/div>\n\n

    \n

    Secretary of State for Levelling Up, Michael Gove, said, \u201cMore\nthan 4 years after the Grenfell Tower tragedy, the system is broken.\nLeaseholders are trapped, unable to sell their homes and facing vast bills. But\nthe developers and cladding companies who caused the problem are dodging\naccountability\u2026 From today, we are bringing this scandal to an end.\u201d<\/em><\/p>\n<\/div>\n\n

    \n

    FTBs soar to 20-year high<\/strong><\/p>\n<\/div>\n\n

    \n

    The number of first-time buyers (FTBs) skyrocketed in\n2021, with an estimated 408,379 people purchasing their first home during the\nyear, according to Yorkshire Building Society (YBS).<\/strong><\/p>\n<\/div>\n\n

    \n

    This is a 35% year-on-year rise and the first time since\nbefore the global financial crisis that the number of FTBs has surpassed\n400,000. Falling unemployment, low interest rates and low deposit mortgage\ndeals have all helped to boost demand.<\/p>\n<\/div>\n\n

    \n

    FTBs in high value areas also benefited from the\ngovernment\u2019s Stamp Duty holiday, receiving additional relief on properties up\nto \u00a3500,000. Another pandemic bonus for FTBs was the larger deposits that many\nwere able to save due to reduced expenditures during lockdowns.<\/p>\n<\/div>\n\n

    \n

    Nitesh Patel, Strategic Economist at YBS, called the FTB market in 2021 \u201cextraordinary\u201d <\/em>and added,<\/em> \u201cLow borrowing costs is an important factor and the increased availability of more low deposit mortgages has also been an enabler mostly for first-time buyers.\u201d<\/em><\/p>\n<\/div>\n\n

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

    Strong end to record-breaking year \u2013 but uncertainty ahead As Big Ben\u2019s bongs rang out, a record-breaking year for the residential housing market gave way to an uncertain New Year. Completed transactions to November totalled 1.36 million, which means the number of homes sold in 2021 will reach levels not seen since before the global […]<\/p>\n","protected":false},"author":3,"featured_media":4189,"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\/4184"}],"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\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/comments?post=4184"}],"version-history":[{"count":1,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/posts\/4184\/revisions"}],"predecessor-version":[{"id":4187,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/posts\/4184\/revisions\/4187"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/media\/4189"}],"wp:attachment":[{"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/media?parent=4184"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/categories?post=4184"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/tags?post=4184"},{"taxonomy":"hd_content_source","embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/hd_content_source?post=4184"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}