A Busy Time In Property Market

According to information provided by Halifax, the number of people moving home (for 2021) was at the highest level in 14 years. 265,070 people moved home in the first six months of 2021, and this was a 132% rise compared to the opening six months of 2020. There were an additional 151,040 transactions in the initial six months of the year, higher than the 114,030 transactions in the first six months of 2020.

Andrew Asaam, Mortgages Director, Halifax, said: “The rate and scale of the growth of the home mover market are quite remarkable. After several years of flat transaction numbers then a marked fall at the start of the pandemic, we’re now at a level not seen since 2007. There are many factors that have driven this activity, perhaps the biggest of which is the ‘race for space’ amongst those planning to work from home in the long term. The timing of some of these moves will also have been influenced by people wanting to benefit from the Stamp Duty holiday.”

Andrew Asaam concluded by saying; “It is important to recognize the boom in sales was not limited to movers. There were more first-time buyers in the first six months of this year than in the first half of any of the last 10 years. Those getting on to the housing ladder accounted for almost half of all mortgage-backed purchases, which is in line with the long-term average.”

Industry specialist tips further price growth in early 2022

Reallymoving are predicting a 2.5% price increase in January 2022, and this is based on property deals which have already been agreed between buyers and vendors. This analysis is based on reviewing over 18,000 conveyancing quote forms from a three-month period.

The company believes the average completed sales price will increase to £342,836.

Rob Houghton, CEO of reallymoving, comments: “Transaction volumes are unsurprisingly down since the end of the stamp duty holiday but the outlook for the housing market in early 2022 is positive. The most intense phase of the post-pandemic boom has now subsided bringing about a brief autumn lull, but the fundamental supply and demand imbalance continues to support prices and, while the threat of interest rate rises will give some buyers pause for thought, thanks to stress-testing by lenders most homeowners will be able to absorb small rate rises over an extended period of time without too much trouble.”

Rob Houghton concluded by saying; “House price inflation for first-time buyers has been lower than for upsizers and downsizers, meaning first-time buyer activity levels are reassuringly high at around 54% of all buyers – an encouraging sign of market health. An anticipated surge in new listings in the new year will drive activity, boost transaction levels and help existing sellers to complete chains.”

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