WHAT HAPPENED TO THE PROPERTY MARKET IN 2021

The Property Market 2021

Wow, what a year! We have been faced with a global pandemic threatening job security, livelihoods, financial and personal wellbeing, yet despite the worldwide troubles the property market, in many aspects has proved to be a revelation.

So why has the property market performed the way it has in 2021?

Could it all have started with the government intervention offering a stamp duty holiday back in July 2020, creating huge savings for many home movers?

On a purchase at £300,000 people were saving £5,000 on SDLT.

And then there’s the panic buy theory – Can you remember the toilet rolls whizzing off the shelves and the fuel disappearing from the pumps? Well, where the housing market is concerned, a lack of supply and an increase in demand has in turn, forced house prices to rise.

With many more buyers out there than sellers, buyers are paying over the asking price to secure a home. So, a property that is correctly priced and in demand has been sold within days of coming to the market!

Zoopla reported that 46% of questioned people were moving due to requiring additional space following on from the lockdown.

House Prices and Activity

In Chesterfield, the average asking price of property increased by 5.9% in the last year and 16% over the last 3 years.

On average this year there have been 68 sales per month and 178 rentals per month.

Currently the marketed share of properties is below

Chesterfields Most Expensive Homes this year with sales completed in 2021.

Planning Applications

In our searched Chesterfield Area, there have been 531 planning applications within the year and our investigation shows that 100% of applications were successful with a potential build spend of £194.7M. The majority of these applications were for home improvement extensions, resulting in fewer properties to the market. 

Mortgages

An increase in First Time Buyer mortgage products available saw a return to the 5% deposit and 95% mortgage. Although this was offered, an exemplary credit history was required to qualify.

Growing rental prices and demand for rental properties, provided confidence to mortgage lending, offering 85% mortgages with a deposit of 15% rather than the age old required 20/25%. With many more mortgage products available across the board, this continues to keep competition between lenders forcing interest rates to stay low.

Stamp Duty

Stamp Duty (SDLT) returned in October 2021 producing pressured workloads for solicitors and mortgage companies trying to get the deals completed prior to the cut off date.

Although the return of SDLT meant that the savings had gone, this did not have a negative effect on properties coming to the market.

If you are a first time buyer you still do not have to pay the SDLT on property a purchase up to £300,000. For other home movers the current SDLT is identified below;

Up to £125,000 – 0%
The portion from £125,001 to £250,000 – 2%
The portion from £250,001 to £925,000 – 5%
The portion from £925,001 to £1,500,000 – 10%

Example - If you purchase a house for £295,000 the SDLT you pay will be calculated as follows:

0% on the first £125,000 = £0
2% on the next £125,000 = £2,500
5% on the next £45,000 = £2,250

2022 Prediction

Rightmove indicate an increase in homes coming to the market toward the end of the year and have seen a 19% uplift in valuations at the end of 2021 against the same period the previous year. More Property coming to the market will give buyers a wider choice, but we still anticipate demand to be significantly higher than the supply and expect the housing market in 2022 will be very similar to 2021.

With continued strong demand for housing and a competitive mortgage market, it would be prudent to expect a further 5% rise in house prices in 2022.

If a fresh start and moving home is on your agenda for 2022, why not get in touch to discover your next steps and start making plans!

Let us guide you through the process by understanding the value of your home and getting you mortgage ready.

Our friendly team look forward to hearing from you!

The New Oak Estates Team

info@newoakestates.co.uk | 01246 211 646 | www.newoakestates.co.uk

* Data Scources - Propertydata.co.uk, Rightmove.co.uk, Zoopla.co.uk

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