2005.

2005 was the last year when a month saw property price increases like the one just witnessed in January 2022. One of the biggest selling songs, 17 years ago, aptly too was Gold Digger by Kanye West. Will 2022 see this property price growth continue or will the property market cool down?

Read on …

January 2022 saw an average price increase of 0.8% in that month alone. That’s 11.2% higher than January 2021. What’s equally striking too is that property transactions reached record levels too in the month just gone.

These are not statistics we’ve plucked from the air at Hogan’s but come from Nationwide, that banking giant:

Robert Gardner, Nationwide’s chief economist, said: “Housing demand has remained robust. Mortgage approvals for house purchase have continued to run slightly above pre-pandemic levels despite the surge in activity in 2021 as a result of the stamp duty holiday, which encouraged buyers to bring forward their transactions to avoid additional tax.

“Indeed, the total number of property transactions in 2021 was the highest since 2007 and around 25% higher than in 2019, before the pandemic struck. At the same time, the stock of homes on estate agents’ books has remained extremely low, which is contributing to the continued robust pace of house price growth.”

His final point is interesting too, as this is something we’ve witnessed – houses for sale and to rent are in very short supply, both nationally and in our corner of East Leeds. Properties let and sell quickly and have done for a while now.

What’s been notable too is that workers and families are returning to city and town living. When working from home became the norm, many people sold their city centre dwellings and moved to rural, inexpensive areas as commuting was never a factor.

London, Manchester, Birmingham and Leeds, for example, have seen buyers return to these cities and others.

Many people readily admit to social isolation once the novelty of not commuting daily had worn off and it is great to see some level of normality return to Leeds city centre.

Chestertons confirms this in London:

“For many, 2022 feels like a new chapter and house hunters have been eager to begin the new year in a new home. Following on from a busier than usual December, London’s property market has continued to see record numbers of buyers registering throughout January.

“While spacious properties or homes with an outside space remain sought-after, apartments in some of London’s more central boroughs are experiencing a steady comeback. This is particularly driven by professionals who are returning to the office and are seeking a nearby home as well as international investors and students.”

What happens in London often has “ripple effects” in other cities, and Leeds and its close suburbs should continue to see property price growth in Feb 22 and beyond.