For buyers, sellers, investors, and tenants, predicting the next wave of trends within the property market is never easy, but for those seeking a smooth and cost-efficient transaction, it’s a good place to start.
Recently, the nationwide house price tax index revealed strong but stabilizing house price growth. Housing affordability, alongside the ever-present cost-of-living concerns, is influencing both buying and renting trends. How else is the UK property market evolving?
Change in seasons
As things begin to heat up and we rapidly approach the halfway point of 2022, there appears to be an apparent shift in the market dynamics which could split the year into two very different halves. The second half of the year is predicted to be much less of a frenzy, but to remain busy by historical standards, nonetheless.
Growth in activity this year
For landlords and buyers, housing market activity has remained thriving with mortgage approvals predicted to run above pre-covid levels. This is in line with the unemployment rate returning to low pre-covid levels. Demand is once again being supported by a healthier economy and a smaller unemployed population.
Cities become trendy once again
There has been a clear and notable spike in interest for both cities and commuter towns this year. The demand for open space and quiet surroundings appears to have slowed down since the pandemic. After a two-year hiatus, it seems that people are done with social distance and are ready to return to the hustle and bustle of our country’s beloved cities such as London.
The rise of remote work
Homeowners and tenants alike have made rather drastic alterations to their work-life balance over the past few years. This is assumed to be one of the drivers for house prices and rents rising as buyers will have new requirements aligned with their working-from-home lifestyle, such as office space and quiet surroundings.
Across England and Wales, the distance tenants live from their workplace has seen an increase of 31% since the pandemic – that’s a jump from 19 miles to 26 miles. This is most certainly a result of a working-from-home culture firmly establishing itself in a post-pandemic Britain.
Short-term lets remain a trend
Short-term rentals and holiday homes are a growing trend that isn’t likely to fizzle out any time soon. Property investors and prospective buyers can consider this avenue with more confidence than ever before. The staycation and home away from home trend remain steadfast, making quaint British seaside towns a top priority for buyers.