Key statistics

Defying the odds

With annual property price growth at a 17-year high, and a record number of properties sold subject to contract (SSTC) within the first week of marketing, the housing market continues to defy the odds. Many expect a more balanced market to emerge over the course of 2022 but, as yet, there is little sign of any sea change in direction

Fast flowing

The number of buyer enquiries per property for sale is traditionally highest in March, April, and May, with 2022 looking like no exception. With the largest mismatch between demand and supply at this time of year ever recorded, Rightmove report over one in five properties is currently selling (SSTC) in just one week and nearly half within two weeks. An estimated 75% of properties are successfully finding a buyer, up from a historical average of around 50%.

The average price of a property coming to market has breached the £350,000 barrier, while the Nationwide report that, at 14.3%, annual price growth in the year to March is at its strongest level since November 2004. With strong competition for available properties, many sales are subject to ‘best and final offers’ and nearly 40% of properties are selling at or over asking price (NAEA). Despite fears that a lack of properties to sell would impact transaction levels, sales, and mortgage approvals to date in 2022 are running higher than the longer-term average (Dataloft, Bank of England, HMRC, 2017-2021). Annual price growth is evident across all the prime markets of England and Wales.

Spring statement 

By the end of 2021, the UK economy was just 0.1% below its pre-Covid end of 2019 level. However, the Chancellor, in his Spring statement, has warned that the global economic outlook is ‘challenging’. The Office for Budget Responsibility has downgraded its forecast for UK economic growth in 2022 to 3.8% (from 6% in October). The GfK¹ report that consumer confidence has fallen for the fourth consecutive month, as the pressure on household finances increases.

Record high food, fuel and energy prices are set to see inflation average 7.4%, peaking at over 8% in the final quarter, while wage growth is predicted to be 5.2%. In a bid to calm spiraling prices, the Bank of England has raised the base rate of interest for the third time in four months to 0.75%, still low by historic standards but more incremental rises are expected. While many households will benefit from a Council Tax rebate and changes to the National Insurance threshold, the ONS² report household savings levels are now at their lowest level since the start of the pandemic. 

Sustainable living

With energy and fuel costs rising, new research by Aviva indicates that prospective buyers are increasingly considering the eco-credentials of their next home. 37% of adults stated that they would consider the energy efficiency rating of their next home, a considerable rise on the 22% that did so on their current home. A far higher proportion will consider the state of the double/triple glazing, wall and roof insulation. Over 25% would be keen to purchase a home with a renewable energy source and 22% would like an electric vehicle charge point. Energy efficiency is one of the main reasons why people consider a new-build property, virtually all of which are EPC rated ‘A’ or ‘B’ (Dataloft, Property Academy, 2021). Although nearly half of current homeowners (45%) believe significant eco-changes would be too expensive, the government’s announcement of 0% VAT on materials and installation of energy efficiency equipment for homes may well make some homeowners reconsider.

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