Quarter 1 of the housing market, both locally and nationally, has continued at the accelerated pace we witnessed during 2021.
The prevailing winds of inflation and the associated rise in the cost of living, the tailing off of the pandemic, the ongoing war in Ukraine and the rise in interest rates have as yet taken no significant effect. The critical question is whether buyer confidence is altered and the rise in house prices is curtailed over the rest of the year and into 2023?
One thing is certain, the Conservatives will want to do all they can to support the property market as we gear up to the next general election. Governments who oversee falling house prices, historically, follow a similar trajectory in election year!
Our Quarterly Housing Market Report provides key statistics on the UK and local housing market, assessing its performance and providing a transparent perspective from the area’s most trusted agency brand.
The annual rate of house price change remains high at 7.1% according to HM Land Registry. In Hertfordshire, the rise is into double digits as the popularity of strong commuter locations and the attraction of the many outstanding schools in the county continues to be a strong draw for both locals and those looking to relocate. Sales transactions are beginning to normalise from the artificial stimulus created by the Stamp Duty holidays of 2021.
The single biggest obstacle facing the market is the congestion that has become deep-rooted in the system from sale agreed to completion. Sadly, until the legal sector modernises, embracing automation and efficiencies, things are unlikely to improve dramatically.
Market Outlook
Classic market economics of supply and demand are currently playing out across the market. Housing stock levels have yet to increase to meet the demand either nationally or locally. New buyer registration across the Ashtons Group is up 135% vs the same quarter last year. In contrast, new instructions are only running at 93% versus the same point last year. The recent rise in interest rates may start to apply the brakes to the market, but until the balance of power shifts from seller to buyer the market will continue to rise, all be it not at the rates we have come to expect since the end of the first lockdown in May 2020.
Whichever way the market goes, it is always vital to remember that a house is not only our most valuable financial asset. If events of the past couple of years have shown us anything, our homes have proven to be of immeasurable value in a number of ways, providing us with shelter, security and a sense of place and certainty in an increasingly uncertain world.
For an obligation free chat about how you are positioned within the current property market and how you can best approach marketing your home in 2022, get in touch today.
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