Extend Now – Move Later – check the outlook .. this may be the ‘right move’ for 2022!

We at Mint understand that our work project outlook and potential for this seemingly challenging year ahead will depend on how the housing outlook develops, reference the continuing pandemic and the wide-ranging  uncertainties in play relating to the predicted, quite significant rising cost of living for 2022.

The Home Owners Alliance and Nationwide  Building Society – we noted – have been highlighting the housing market outlook online. They observe – ‘what goes up, must come down’ — or must it.. they speculate? The dizzying highs of 2021 for housing sales -as we at Mint see it – seems to indicate that a housing market crash may be on the cards… but recent trends show that this may well NOT be the case peering on into 2022.

whirlwind

As the HOA report…the last 12 months have been a whirlwind in the property market — in fact, the last 18 months have really kept everyone on their toes. They highlight the situation……We’ve seen record high house prices, record low interest rates, and transaction numbers soaring and falling around the stamp duty holiday. So what will happen in the 2022 housing market?

price growth

The HOA report further that ….UK house prices end the year at a record high, with annual price growth in double digits. Annual  house price growth increased to 10.4%, from 10.0% in November 2021, which was the strongest calendar year for house price growth since 2006. The price of a typical UK home hit record high of £254,822, up nearly £24,000 over the year.  

unprecedented 

A leading agent offered the HOA some further food for thought on what to expect next year. Jonathan Magill, the UK Network director at Strike (the estate agent who will sell your home for free) — told the HOA – “Clearly the stamp duty holiday and ‘space race’ in 2021 created an unprecedented surge in demand in 2021, particularly around the stamp duty deadlines in March and September. However, as both of those deadlines passed, we continue to see demand levels remain strong compared to recent years, so on that basis there still feels like there are high levels of demand to carry into 2022.”  Check their expert’s further thoughts here  –  https://hoa.org.uk/2021/12/2022-housing-market-predictions/?

‘race for space’ 

A further prices outlook update we spotted ‘went live’ recently as New Year loomed. It came from the Nationwide Building Society. They point out that…. Home-owners and housing professionals had a lot to contend with in 2021.. .. the pandemic created a “race for space” as people searched for bigger homes, while the stamp duty holiday and low interest rates fuelled soaring numbers of transactions. A key question is – will 2022 be as dramatic….. and what is the safety first best approach is for the year ahead.

essential home space 

Reference the potentially difficult 2022 current house prices outlook then, we suggest there is another ‘approach’ to get the ‘more space’ at home you need ( and indeed usually move for)…. and that is to perhaps extend and renovate for NOW….and then go for a ‘full on’ home move later on when certain very obvious pressures will almost certainly be less testing.

as we see it ….

This is very much as we at Mint see the situation -certainly for some homeowners. It must be very much worth considering now as the New Year gets underway. The  reason for this view is all about various key  issues – the recent interest rate rise AND the rising talk of pressures on the money markets – revving up a testing home prices outlook throughout 2022, along with the predicted all round rise of  day to day cost of living prices and expenses. 

wait and see 

Commenting on the housing price pressures and the ‘wait and see’  general financial outlook emerging, Robert Gardner, Nationwide’s Chief Economist, said:“Annual house price growth remained in double digits in December at 10.4%, making 2021 the strongest calendar year performance since 2006. Prices rose by 1% month-on-month, after taking account of seasonal effects.

record high

He adds that  …… “The price of a typical UK home is now at a record high of £254,822, up £23,902 over the year – the largest rise we’ve seen in a single year in cash terms. Prices are now 16% higher than before the pandemic struck in early 2020”…. Demand has remained strong in recent months, despite the end of the stamp duty holiday at the end of September. Mortgage approvals for house purchase have continued to run above pre-pandemic levels, despite the surge in activity seen earlier in the year. 

low housing stock 

Indeed, in the first 11 months of 2021 the total number of property transactions was almost 30% higher than over the same period of 2019. At the same time, the stock of homes on the market has remained extremely low throughout the year, which has contributed to the robust pace of price growth.

slowing

The key question, of course. remains – it seems to us – is whether the market will cool in 2022?  Adds Mr Gardner “It appears likely that the housing market will slow next year, since the stamp duty holiday encouraged many to bring forward their house purchase in order to avoid additional tax”. 

slowdown

The Omicron variant could reinforce the slowdown if it leads to a weaker labour market. Even if wider economic conditions remain resilient, higher interest rates are likely to exert a cooling influence. Indeed, house price growth has outpaced income growth by a significant margin over the past 18 months and, as a result, housing affordability is already less favourable than before the pandemic struck.

uncertain 

However, the outlook say experts remains extremely uncertain. The strength of the market surprised in 2021 and could do so again in the year ahead. The market still has significant momentum and shifts in housing preferences as a result of the pandemic could continue to support activity and price growth. Indeed, the Omicron variant could serve to reinforce the shift in preferences in the near term.

confident 

So with all that speculative expertise reference continuing upwards moving home prices, we at Mint remain quite confident more and more householders – as we found a lot last year – should examine the option of extending and improving NOW ..and moving in late 2022 or 2023.

added value too!

Doing this will give homeowners the bonus of needed extra space at home and also, have on hand added price value to be collected for that home move … you make later on …..very sound food for thought some observers suggest. There we are – much to ponder ….my my these are so so challenging times indeed!

We at Mint Builders are, of course, here to help locally with all kinds of questions and ideas relating to the priority planning and 2022 and indeed the next year too!

Feel free to request our project planning and quotation visit to refurbish or extend your home for more ‘liveability’ and increased future sales value in these still vaccination focused, Covid crisis times. Contact Mint Builders on 07734 211958 or email mintbuilders@hotmail.co.uk