Market Comment – February 2022
The housing market despite the Russia Ukraine situation has continued to be as robust as ever in February.
I have purposely started with this particular sentence, as I have been asked how developments with the crisis will affect the housing situation and whilst I do not pretend to know the answer, I have read many reports and most pundits predict a healthy housing market.
Whilst we saw interest rates rise and all of us are noticing the rise in our everyday commodities, it is my opinion that people are adjusting their purchasing power and/or rental expectations to accommodate any increases.
Whilst we cannot ignore the increases, we can also not ignore the statistics in that house prices have seen the fastest January rise in 17 years. We are still experiencing a disparity in the amount of properties coming to the market to the number of people looking, which like any commodity, underpins a healthy market. I noted with interest that Zoopla have commented on the 9th February, that prospective renters are paying £60 a month+ more a month than before the pandemic, as workers return to the office. Also, I read that Lloyds bank reported that house prices in 2021 went up by 9.8% and I concur with the Lloyds bank group, that I expect house prices to maintain their current strong levels over the next year and looking ahead, 95% mortgages will once again be available for first time buyers.
The rental market is as busy as always and I am yet to collate the data from February, but we have seen a significant increase in prospective renters coming to the market and because of this, this has highlighted a slight shortage of stock.
New Homes goes from strength to strength and we are now 100% sold out on 2 developments in Purley and are about to launch 2 more in Purely and I shall keep you further updated.
To conclude, whilst we live in changing times, I thought it a good time to reassure all our clients both past, present and in the future, that the housing market, both in sales, lettings and new homes remains solid and strong and I look forward to reporting back to you at the end of the month.