{"id":4730,"date":"2022-02-22T10:33:31","date_gmt":"2022-02-22T10:33:31","guid":{"rendered":"https:\/\/new.contentdeployment.co.uk\/tomd\/?p=4730"},"modified":"2022-02-22T10:42:35","modified_gmt":"2022-02-22T10:42:35","slug":"residential-property-review-february-2022","status":"publish","type":"post","link":"https:\/\/new.contentdeployment.co.uk\/tomd\/2022\/02\/22\/residential-property-review-february-2022\/","title":{"rendered":"Residential Property Review \u2013 February 2022"},"content":{"rendered":"
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Promising signs in the UK housing market<\/strong><\/p>\n<\/div>\n\n

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Following a record-breaking 2021, continuing strong numbers of agreed\nsales and approved mortgages suggest transactions are likely to stay high over\nthe next few months.<\/strong><\/p>\n<\/div>\n\n

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Net mortgage debt by individuals decreased slightly to \u00a33.6bn in\nDecember 2021, according to the Bank of England. However, agreed sales and\napproved mortgages both remained ahead of pre-pandemic levels, the former being\n11% above its 2017-19 average, according to TwentyCi.<\/p>\n<\/div>\n\n

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Although new instructions remained in negative territory, the latest net\nbalance (-8%) is the least negative since April 2021, according to the Royal\nInstitution of Chartered Surveyors (RICS), a sign that persistently high buyer\ndemand may soon come up against marginally higher available stock. Moreover,\nnew instructions rose above the 2017-19 average in the last week of January,\nthe first time this has happened since May 2021.<\/p>\n<\/div>\n\n

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The rental market looks strong too, with rents rising by 7.4% nationwide\nin the year to November 2021, according to Zoopla. South West England saw the\nstrongest rental growth (9.6%).<\/p>\n<\/div>\n\n

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The Bank of England\u2019s decision to increase Base Rate to 0.5% will have\nlittle immediate impact on existing homeowners on fixed-rate mortgages,\nanalysts expect. Instead, it is first-time buyers, many of whom rely on higher\nloan-to-value mortgages which are more sensitive to rate changes, who could be\nharder hit.<\/p>\n<\/div>\n\n

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Demand climbs\nhigher across the board <\/strong><\/p>\n<\/div>\n\n

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UK Housing demand in January was 49% higher than the previous four year\naverage, according to Zoopla, as pandemic trends spilt over into 2022.<\/strong><\/p>\n<\/div>\n\n

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Buyers\u2019 desire for family houses soared even higher than during the\nfinal six months of the Stamp Duty holiday, signalling that the race for space,\nthat characterised much of 2021, has not yet run its course. Last month, demand\nfor family homes outside London was four times higher than the five-year\naverage.<\/p>\n<\/div>\n\n

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Flats were also popular at the start of 2022, with demand reaching its\nhighest level for five years, propelled by the return of workers to the office.<\/p>\n<\/div>\n\n

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Gr\u00e1inne Gilmore, Head of Research at Zoopla, commented, \u201cEven after\nnearly two years, the pandemic-led \u2018search for space\u2019 is one of the factors\ncreating record demand for homes this month. The market is also being boosted\nby office-based workers re-thinking where and how they are living amid more\nhybrid working models.\u201d<\/em><\/p>\n<\/div>\n\n

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Housebuilders\nthink build costs will keep rising<\/strong><\/p>\n<\/div>\n\n

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More than nine\nin 10 housebuilders expect the cost of building work on homes in England to\nincrease in 2022, with a quarter predicting building costs will \u2018increase\nsignificantly<\/em>\u2019 according to Knight Frank\u2019s latest survey.<\/strong><\/strong><\/p>\n<\/div>\n\n

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Nearly half of survey respondents said that last year\u2019s build cost\nincreases had already had a significant impact on their businesses. Similarly,\n56% said that build costs were the primary factor adding pressure to their\nbottom line.<\/p>\n<\/div>\n\n

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The increased cost of materials (65%) is seen as the main cause of rising build costs, ahead of Brexit-related complications (15%) and labour challenges (8%).<\/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":"

Promising signs in the UK housing market Following a record-breaking 2021, continuing strong numbers of agreed sales and approved mortgages suggest transactions are likely to stay high over the next few months. Net mortgage debt by individuals decreased slightly to \u00a33.6bn in December 2021, according to the Bank of England. However, agreed sales and approved […]<\/p>\n","protected":false},"author":12,"featured_media":4731,"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\/4730"}],"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=4730"}],"version-history":[{"count":4,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/posts\/4730\/revisions"}],"predecessor-version":[{"id":4736,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/posts\/4730\/revisions\/4736"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/media\/4731"}],"wp:attachment":[{"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/media?parent=4730"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/categories?post=4730"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/tags?post=4730"},{"taxonomy":"hd_content_source","embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/hd_content_source?post=4730"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}