2021 was a challenging year across the globe, so as we firmly plant our feet into the new year with a mask in one hand and a lateral flow test in the other I wanted to reflect on what the past couple of years has meant for the property market. The early stages of the pandemic in 2020 forced us into living and working in a totally new way. The work-from-home revolution highlighted the lack of adequate working spaces in most of our properties, the temporary closure of gyms and health centres forced us to exercise at home and attend Zoom classes, and home-schooling our children have tested our internet connectivity and gave me the opportunity to reconnect with the split-infinitive!
We are a resourceful nation though and we set about converting garages into gyms, building timber cabin offices in the garden and upgrading our internet speeds. A stark realisation for many was that they simply didn’t have enough space to live in this way so a profound wave of demand hit the market. Couple that with a Stamp Duty holiday and that wave turned into a Tsunami with nowhere near enough properties available to satisfy the number of people looking to move. So as we waved goodbye to 2020 and welcomed in 2021 we found ourselves in a very obvious seller’s market and it was no surprise that prices started to rise, and rise quickly. Berkshire, like most of the country, has experienced house price growth of between 10-14% in the past 18 months.
From a landlord’s perspective, Government intervention with notice periods and a reticence for tenants to seek alternative accommodation meant a lack of stock entering the market and rental prices began to increase sharply. As we now have almost two years of living like this under our belt, it is interesting to see shifts in how properties are being marketed and sold. Housebuilders have re-designed layouts to include home offices as standard even in their smaller designs, broadband speeds are now a regularly asked question, almost pushing ‘is the loft boarded?’ off the top spot and outside space (however small) is being promoted more than ever before.
Supply still remains an issue for both the sales and rental sectors which is likely to mean prices will remain resilient, with further increases widely predicted into 2022. Whilst we have seen the Bank of England raise the base rate to 0.25%, the effect on most mortgages is negligible. Undoubtedly this will not be the last hike, although any further increases are likely to be incremental and cautious. We must remember we are in an extremely low-interest rate environment so mortgage borrowing for both residential and buy-to-let lending is still excellent value and likely to remain that way for some time.
Hat and Home is an independent estate agency which gives a nod to tradition and a wink to nostalgia. Our mission is to make moving home a fantastic experience. If you need any help with your sale, purchase, let or rental, please just drop us a line.
