April 2022 - Market Comment

All of a sudden, it’s Easter, the year has fully set in and the local property market still seems to the showing the same signs as has been the case for the last twelve months – lack of stock, and rents remaining high (the same can be said for sales).

While the rents are strong it must also be considered against a backdrop of the general cost of living which we have all seen creep up considerably over the last few months, with food and utilities reaching record levels. Local wages are not necessarily as high as other parts of the country and so when affordable stock becomes available it goes….and fast.

Interestingly though and looking at the national picture, the first quarter of 2022 saw landlords buying more properties than they are selling according to data from the Hamptons monthly letting index. This was the first time since March 2016, which was the month before new stamp duty levies were introduced for second or further homes. Overall, investors bought 42,980 homes across Great Britain during the first three months of this year, equating to £8.5bn worth of property.

Despite increases in the Bank of England interest rates, lending is remains relatively cheap. We have seen in our day-to-day work landlords and investors looking at longer-term investments particularly freehold houses, which may have stable long-term family tenants for three to five years.

Whichever way you look at it, if you need some advice, want to chat through potential new buys, or if you thinking of selling, please get in touch with us on 01202 554470 and we’d be delighted to help in any way we can.