It might be unexpected, but 2021 has seen quite an active housing market. The demand has far outpaced supply, and different property types and locations have surged in popularity thanks to lifestyle changes brought on by the pandemic. Let’s take a look at the winners and losers in the property market in the next year.
This article does not constitute advice. Professional advice should be taken prior to acting on any part of it. Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.
Winners
King in the North
With the desire for outdoor space high on the priority list for homebuyers, many looked to the north for their next property. As a result, house price growth in the region exceeded house price growth in the South in 2021 and is expected to continue next year.
Prime London locations
Prime London postcodes did not experience the property price growth seen in other areas of the country, but the tide may turn in 2022. Toward the end of this year, there has been a flurry of activity in areas with high price tag properties such as Marylebone, Mayfair, and Notting Hill.
Cash-paying buyers
As it’s a seller’s market, anything a buyer can do to make their offer more appealing will help them win their bid. With mortgage rates starting to climb and an ever-looming Bank of England base rate increase on the horizon, cash buyers are in the best position in the new year.
City dwellers
Once pandemic restrictions were lifted, city centre locations started to become more in demand again. With many people opting to explore country life, once offices opened back up, their commutes to their office jobs in the city started to take a toll. Many workers are on the hunt for pied-à-terre or small flats – a place to merely lay their heads during the week before they head back to their spacious homes at the weekend.
Buy-to-let landlords
Market supply of rental properties, much like the housing market, has pushed the price of available properties up. Since many landlords have been searching for alternatives to remain profitable in recent years, this is a welcome change.
Losers
City rebounders
As mentioned, there was a bit of an exodus to the countryside in response to pandemic restrictions, but not all who moved are happy and will likely be returning to city life in the new year. With property prices on the rise in many city locations, and the costs associated with selling and buying property, those returning to city life might just return with their bank accounts a bit lighter.
First-time buyers
Saving up for a deposit continues to be a challenge for many people hoping to get on the property ladder, and with property prices and inflation on the rise, there doesn’t seem to be a change in sight.
Priced-out locals
In holiday hotspots, many of the locals are being priced-out of the already limited availability. MPs in popular areas are calling on the government to introduce planning laws to limit the number of second homes and holiday homes in their areas to allow their constituents the opportunity to buy.
Home buying in 2022
If you’re planning to buy or sell property in the new year, contact an adviser for personalised advice. At Dental & Medical Financial Services, our experts are dedicated to helping our clients select the right mortgage deal for their needs. If you’re ready to take the first step toward home-buying, get in touch with us today.
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