Red Squirrel Property Shop

Market update and outlook for 2022:

 

Sales

  • As of the start of October 2021, there has been 1.5 million house transactions. This is up from an average of 1.2 million.
  • Property prices have increase by 10.8% on average
  • The largest average increases were seen in the north of England with North West at 9% increase and North East at 6.7%
  • The Isle of Wight's property prices have increased by an average of 17% over the last 12 months

 

Lettings

  • There has been National growth of 6% - the highest in 13 years!
  • There is 43% Less stock on a 5-year average
  • There has been a 43% increase in demand
  • The South west has the highest average increase of growth at 9%

 

Headwinds

  • Lack of availability puts off potential sellers
  • Sellers’s expectations can become unrealistic
  • Raising cost of living
  • Modest increase in mortgage rates will change sentiment in market, although they are still competitive

  

Outlook / Headwinds for 2022

  • 22% of the population will still be eager to move with a large increase in home ownership
  • Competitive mortgage rates will encourage further investment and ownership
  • A modest price increase of 3% is expected
  • A revert back to an average of 1.2 million transactions
  • Demand should remain strong

 

🌟Demand expected to outweighing stock

🌟Projections of a further average increase of 5.8%

🌟With the demand outweighing availability there is likely to continue to be a substantial difference between rental availability and demand, driving the investment market forward