There’s no doubt that 2020 and 2021 have been unusual years, to put it mildly. The pandemic made people re-evaluate living space as working from home, with kids, became a norm for many. This saw demand rise for properties for sale or let with 3 or more bedrooms. The Stamp Duty holiday added to the buying frenzy too, with many areas in Leeds and other areas, seeing 10% price growth this year.
Mortgage rates remain at low levels and it also became possible for many to acquire mortgages with just a 5% deposit.
This meant properties sold quickly at premium prices with many estate agents, including us, quickly becoming short of stock to sell or let.
That was 2021 but will this pattern continue in 2022?
Probably, is our answer.
Used car and van dealers and car and van owners saw used vehicle prices rise in 2021, because of shortages of semi-conductor chips and global shrinkage of manufacturing and we all know when supply is low and demand is high, prices rise. That applies to a semi-detached house in Harehills or a Ford Focus in Beeston. It’s a simple rule of economics, isn’t it?
Yet many are predicting a cooling in 2022. Car dealers, we know, reckon cars will begin to depreciate like they’ve always done next year and house prices will continue to rise, but at a slower level.
All cities, including Leeds, are seeing outward migration too.
Many companies instructed staff to work from home and some have made that permanent or allowed a hybrid model, or remote and in-work employment and consequently, it’s anticipated that property prices in city centres will flatten. Not fall, but flatten.
We quote too from Moveable:
Buyers are also likely to branch out into cheaper neighbourhoods with larger outdoor spaces with 50 percent of Londoners no longer having an urge to buy a home in the capital.
Sixty-three percent of movers are on the search for outdoor space which means house prices are likely to increase across all parts of the country.
Simon Bath, CEO of iPlace Global and creator of Moveable said people have “paid over the odds on property this year” on moving home, with services overcharging customers in a response to increased demand.
What does Stephen Thorpe, the Director of Hogan’s, think about property in 2022?
More people are adopting working from home patterns and that, I think, will continue. East Leeds provides a tremendous value proposition for homebuyers and investors. It is an area with substantial homes, close to Leeds City Centre, but with low buying prices and high rental and capital growth expected next year. 2021 surprised many in the industry, but though 2022 may not repeat this level of activity, don’t bank on a slowdown. Interest rates should stay low and demand will remain high. Anyone looking for value for money should look to the east of Leeds, where we’re based.
