The ever-changing face of the property market is something we all have to keep up with it. In the last two years there has been a dramatic change in the everyday functioning of the property market, due to unprecedented ongoings such as the Covid-19 pandemic. The shutdown of the British property market spiked a tumultuous time for many, and brought uncertainty, loss and devastation to many people. As restrictions begin to ease during the first few weeks of 2022, We Buy Any House have decided to take a look into some of the most frequented questions regarding the 2022 property market…
What Will Happen to Mortgage Rates?
In December of 2021, The Bank of England opted to raise interest rates- something which has not occurred since 2018. Due to this, the increase in interest rates has had a knock-on effect and consequences for homeowners and those buying property. Following the announcement, mortgage lenders decided that naturally, they would have to increase the rates on their mortgage trackers, in an attempt to keep in line with the Bank’s financial situation. Some mortgage companies have already begun the retraction of their cheap mortgage deals, and consequently, experts have predicted that interest rates will rise again. Expected to rise by 0.75% by the end of 2022, for the average homeowner or prospective buyer, this means expensive monthly repayments on their mortgage. It is advised to lock yourself into a fixed mortgage rate in order to avoid the gradual increase in interest rates.
What is on the Homeowner Wishlist?
Each year a homeowner wishlist is generated, combining all of the most sought-after features of a property in order to concoct an ideal and ‘perfect’ home for that year. As of 2022, the wishlist has been determined with the past few years in hindsight- especially as the pandemic created a lot of ‘must-have’ features for their property. Throughout lockdown, those living in high-rise buildings craved space, especially outdoor garden space. Homes with gardens have become increasingly sought-after following lockdown, in addition to those that are within walking distance to transport areas.
What is Happening with Stamp Duty Holiday?
As the stamp duty emerged in 2020, it created an inevitable surge and demand for properties. The stamp duty holiday enabled prospective buyers to save thousands of pounds on their homes, as they weren’t expected to pay any stamp duty on a property that was worth up to £250,000. This meant that if somebody was to purchase a home valued at £300,000, they would only pay £2,500 in stamp duty- rather than the typical £5,000. As of 2022, the stamp duty holiday has been extended into the summer, this will allow people to get vaccinated and rejoin the house viewing/selling/buying process without the huge concern of contracting Covid-19.
How Will the Pandemic Affect the Property Market:
The Covid-19 pandemic has brought unprecedented chaos to many industries, and the property market is no exception. However, as of 2022 the economy will hopefully begin to stablisie and recover, which means alas there may be some peace in regards to the property market. The large amounts of government schemes available to the public will ensure that there will be a broader and more sustainable property market, that sees banks more willing to lend to first time buyers.
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