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Street view of a row of houses. The front of each house has a porch, stairs and a sidewalk.

What Is The Future Of The Property Market?

With 2021 being the busiest year for the property market since 2007, the pandemic has created a crazy 18 months in housing. With the stamp duty holiday ending in September and uncertainty around housing demand, the future of the property market is still relatively unknown.

This guide will go through some predictions for the next year and what it might entail for the property market.

Will There Still Be A Demand For Property?

Of course, a lot of the property demand was fuelled by the stamp duty holiday and there was a rush of housing transactions in September as the deadline loomed large.

This demand was also brought about by the lockdown and the wishes for more homeowners to have bigger and outside living spaces. It was very much the year of homeowners rather than property investors.

This means the regulated sector has been exceptionally buoyant over the last 18 months. Quick chain transactions were in demand with borrowers looking to buy their perfect home.

However, as mentioned, investors were not as prominent in the property market in the past year. Due to the pandemic, tenants stayed in properties for longer and there was also an eviction moratorium which helped this lack of supply.

First-time landlords did not enter the market and landlords were not able to put existing properties for sale or rent.

As 2022 rolls around and we come further out of the pandemic, investors and landlords will come back into the fore. They will add and change their portfolios, placing more properties on the market.

New opportunities for investors will give them a chance to access the current price growth and low interest rates.

However, with the Bank of England base rate expected to increase in the coming months it is likely that we will see this increase being passed on to the investor with higher mortgage rates and payments.

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Property investors might continue to get themselves fixed for a period at a low rate whilst they grow their property portfolios.

Investors will come back strong and be a big part of the property market into the next year.

How will Bridging Finance change in 2022?

There is currently a demand for more space in houses as there has been a softening around permitted development. More people are looking to do refurbishments or conversations but there is a lack of supply for consumables because of Brexit.

This has meant that it is unclear whether the project can be done for the prices being quoted. Lenders will be cautious when reviewing these types of transactions to make sure that the profits and transactions are sustainable.

According to a blog post from MT Finance, the company believes that “we will continue to see a large amount of liquidity in the market” and that we will “continue to see changes to products on both a pricing and leverage perspective over the coming months.”

Bridging finance works in a very reactive fashion so when the consumer dictates, products will shift from that perspective. Whatever the market is suddenly inundated by, there will be product changes to support the transactional flow of whatever is dominating the market.

Bridging is about capitalising on an opportunity and therefore behaviour will be wherever opportunity lies.

Where Will The Property Industry Struggle In 2022?

The lack of supply is still a big problem and will continue to be in the coming year. Yes, there is heightened demand and investors are beginning to come back onto the scene but there are still not enough properties on the market.

People will still pay too much for properties in the coming year but hopefully as we continue to come out of the pandemic more and more properties will come onto the market.

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