Some people asking this question are local buyers troubling themselves that they are about to buy their home just before a potential property crash, yet others are homeowners wanting to know where the top of the market is before they sell. Even a handful of landlords unable to either start buying or start selling some of their rental portfolio.
Therefore, let’s see what has happened in 2021 to make a better judgement of what should happen in 2022.
Nobody has a crystal ball that can tell what 2022 holds, however most property experts are not forecasting doom and gloom for the British property market.
Whilst the final numbers won’t be known until Easter 2022, it is estimated that in 2021 one in fifteen privately owned homes in the UK are expected to have changed hands, being the busiest year in the last 14 years.
The pandemic made many families re-evaluate what they wanted from their home, with many wanting bigger rooms (and more of them). Many in the media dubbed this ‘the race for space’, meaning the property market was flooded with home buyers, most bringing forward the home move they had planned between now and 2025.
The issue was, there weren’t enough local properties on the market to satisfy every buyer, meaning house prices have unsurprisingly been driven up.
Although it is still premature to say what will happen in 2022, most property commentators seem assured that we are not heading towards a house price crash, mainly due to one reason.
There aren’t enough properties on the market. Simply supply and demand economics!
And I can’t see that changing for 2022.
Nonetheless, demand for Chorley & Leyland homes will still be there. I have even read some reports suggesting that more than 20% of British households are seriously thinking of moving between now and the summer of 2023, and this will support local house prices whilst demand continues to exceed supply.
Another reason why I believe that will be the case is the return to home working. If, as a country, we will need to work from home each winter for the foreseeable future because of new variants, then this will cement the need for people wanting to move home for remote working.
It might be that buyers are looking for a dedicated office at home or that they feel they now no longer need to be in large built-up areas that are near to their work.
This increase in local house prices is expected to entice even more house sellers onto the market, which will steady house prices slightly (as supply increases), yet I still believe there won’t be enough properties coming onto the market to satisfy the colossal demand.
Buying property is a long-term game
Sometimes you just have to make your decision, get something bought and start the journey of the next 25 to 35 years of living in your family home whilst paying off your mortgage.
The present low interest rates for first-time buyers means that there are some very low mortgage deals available for those with a decent deposit, making it a good time to buy a property in Chorley or Leyland, especially if you fix the interest rate.
If your deposit is humbler, the Government’s 5% deposit mortgage guarantee scheme will still enable you to buy a property, albeit at a slightly higher interest rate.
Looking at the bigger picture, these are only my opinions. If inflation doesn’t get too out of hand and interest rates don’t go above 2% to 3%, it looks like house prices will, for 2022 and a few years beyond, continue upwards albeit with a slower trajectory than 2020/21 and probably with a few short, sharp up and down spikes on the way.
These are my opinions – what are yours?
If you are a local homeowner or landlord and think this may affect you – feel free to drop me a line.
If you are looking for an agent that is well established, professional and communicative, whether you’re buying, selling or looking for an investment opportunity, then contact us to find out how we can get the best out of the Chorley and Leyland property market for you.
If you would like more information about anything in this article, do drop me a line.
Call 01257 273 324, DM or email at info@forbesestates.com
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Best regards
Paul Forbes
