Where is the market going?
Opinion on where the property market is heading is divided. Some say the market is due a correction within a year others say the market will remain buoyant for five.
Knight Frank and Right Move take a more productive line and predict continued growth through this year and around 5% increase in values hardening over the next two years to 2.5% and then 1%.
Huge inflation creates the notion of doom and gloom, affordability issues and rising interest rates and concludes that this must influence the housing market. The point cannot be denied but other factors exist and are compelling reasons for the market to remain strong.
What are those factors?
It is the writer’s opinion that demand remains well ahead of supply, that doesn’t look to set to change anytime soon. Interest may rise but will 2/3% be deemed too much for the property market to bear? 5/6% rates are not like previous housing crashes where the rates were at giddy height of around 15%.
New Housing is key to delivery and sustainability and planning permissions are exceptionally slow as the nation recovers from the covid pandemic. One factor that is often forgotten is the Brexit years of uncertainty. That uncertainty had the effect of many wanting movers to sit tight and see how the economy was affected.
What about political influence?
Given the facts point towards a property marketplace that remain strong for two years what will influence the market beyond that. With an election then looming political parties usually tinker with there policies to support more housing growth in an attempt to attract voters.
Taylor and Co as property consultants in most property sectors believe that an optimistic and positive approach is the way they want to advise. They don’t see any major disruption to the property sector while demand remains high.