LGC – What Will Happen In 2022 Housing Market?

6th December 2021 posted in PROPERTY NEWS

At this time of year, it is natural to look ahead. At Country Properties, we focus on the housing market, and we bring buyers and vendors together in Letchworth Garden City.

If you are looking to make a move in 2022, we are here for you. We know what is happening in the market now, and what is likely to happen next. We are on hand to help you, and if you have any questions about the Letchworth Garden City housing market, we can assist you.

What is happening with Letchworth Garden City house prices?

As of late November 2021, Rightmove says house prices in Letchworth Garden City are as follows;

Properties in Letchworth Garden City had an overall average price of £399,090 over the last year.

The majority of sales in Letchworth Garden City during the last year were terraced properties, selling for an average price of £329,308. Semi-detached properties sold for an average of £486,310, with flats fetching £216,366.

Overall, sold prices in Letchworth Garden City over the last year were 3% up on the previous year and 3% up on the 2017 peak of £386,410.”

Industry experts believe momentum will be maintained in housing market

According to information provided by the Building Societies Association (BSA) indicates there is momentum in the property market. When you compare the third quarter of 2021 with the same period of 2022, gross lending has increased by 22%.

A total of 109,575 mortgage loans were approved in the third quarter of this year, which was 4% higher than the third quarter of last year.

Given there are concerns that interest rates will increase, it is natural that some people are concerned about demand for homes dropping in 2022. A drop in demand would likely lead to a fall in house prices, which would be bad news for vendors who were planning on selling their home in the future.

However, there is no reason to believe that will happen, and many industry experts are of the opinion that rising interest rates will not affect the property market.

Andrew Gall, chief economist at the BSA, says: “The strong level of mortgage lending activity in the third quarter by building societies, and across the wider market, suggests that the tapering of the stamp duty holiday has not been a major barrier to property purchase. It is likely that households will continue to re-evaluate their housing needs in the post-pandemic world, which will to continue to support demand into the new year.”

Andrew Gall also said; “The Bank of England is sounding like it is ready to increase the Bank Rate from its historically low level of 0.1 per cent over the coming months. Whilst this may see some mortgage rates rise, the vast majority of households are on fixed term products and so won't see any immediate change to their monthly repayments. Savings balances have also grown at building societies in the period and it’s particularly pleasing to see an inflow to Cash ISAs, despite a £3.6 billion outflow across the market.”

Currently, in line with Government guidelines, our Letchworth Garden City branch is open and our and lettings personnel are here to assist you. To clients old and new, if you have any queries or need advice on property sales and lettings then please call 01462 481100 or email ian.ellmers@country-properties.co.uk.