The property market in the UK is defying all odds and continues to run hot with 10 percent more households saying they want to move house in comparison to three months ago.
MILTON KEYNES, United Kingdom, July 21, 2022 /PRNewswire-PRWeb/ — The property market is defying all odds and continues to run hot with 10 percent more households saying they want to move house in comparison to three months ago.
According to the Q2 2022 Property & Homemover Report from TwentyCi 402,011 households are currently considering a house move compared to 365,873 in April 2022. In addition, the number of households moving soon has also increased by six percent from 328,640 in April to 348,840 today.
These homemovers will offer a £29 billion lifeline of expenditure to a frail retail economy which is being impacted by the cost-of-living crisis, inflation and increased interest rates. New owners each year spend £1.1 billion on beds and furniture, £462 million on soft furnishings, £2 billion on flooring and window coverings and £4 billion on kitchens delivering a return on investment of £20 for every £1 invested. Consequently, brands should consider adjusting their marketing to have a greater focus on this valuable consumer group.
April to July 2022 saw 358,149 sales which is close to 10 percent greater than the same period in 2019 which is considered the last ‘normal’ operating period prior to the pandemic. With this level of sustained activity, volumes remain on track for 1.2 million transactions in 2022. Inner and Outer London have both seen a recovery in sales agreed (28 percent and 16 percent respectively) since the historic lows experienced during Covid.
House prices are also continuing to rise with the average property asking price increasing by nearly 20 percent since 2019. The average asking price is now £433,000 compared to £360,000 in the same period three years ago. At 29 percent Wales has seen the highest rise in prices, followed by the Northwest at 27 percent and the Southwest experiencing a 25 percent uplift.
House prices remain high due to the continued high level of sales agreed and a lack of properties coming to the market meaning that demand significantly exceeds supply providing for a seller’s market. Property stock levels are slowly rising but the available months of stock are still down by almost half on historical norms. This has resulted in the number of price changes falling by 45 percent and a 35 percent drop in properties being withdrawn from the market compared to 2019. The current market conditions remove the need for discounting whilst people are not withdrawing their properties as sellers can achieve quicker sales than previously.
Comments Colin Bradshaw TwentyCi’s Managing Director:
“Our previous observation that the owner-occupied sector appears to be detached from the woes that are befalling the wider economy continues to hold true. Transactional levels remain greater than 2019 and we are yet to see a sharp re calibration of the residential property market in either price or volume. The supply side issue of the right stock at the right price persists
and buyers and sellers are desperate to keep chains intact or indeed willing to break chains to keep their buyer or seller happy. How much longer can it last? Perhaps this is now the new normal.”
In contrast to the owner-occupied market, the lettings market is in decline. New instructions are down by over 27 percent compared to Q2 2019 whilst lets agreed have dropped by 18 percent and lets are down by 12 percent. Fewer rental properties are coming to the market suggesting that increasing numbers of renters are staying put. The average asking price is now £1,520 per
month, an increase of 10 percent since 2019. With interest rates rising and energy costs soaring it is expected that landlords will pass on the cost to tenants.
Notes for editors
TwentyCi is an information and marketing services company that provides UK residential property data, analytics & insight for marketing and other key strategic purposes. Our experience and client portfolio encompasses multiple sectors and categories, including property and estate agency groups, retailers, financial services, automotive and utilities.
Holding the UK’s largest and richest resource of factual homemover data compiled from more than 29 billion qualified data points, TwentyCi works with advertisers and their agencies to create contextually targeted marketing programmes that cut through by reaching consumers at the exact moment that they need a company’s product or service, through the best media
channel for that individual.
Please note that our publication normally provides year-on-year comparison of the residential market, however, given the extraordinary impact on the market arising from the Covid-19 pandemic and the unique events affecting the property market during 2020, for this report the comparison looks back at 2019 to provide a ‘near normal’ comparison.
For further information please contact Louisa Osmond on 07977401 235
Louisa Osmond, TwentyCi, 44 7977401235, email@example.com
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