Prime Housing Market Update

With the year drawing to a close, it seems a good time to look back over 2021 and forward to 2022.  It has been an extraordinary year for the prime property market in the north of England, driven by low stock levels, high demand and very low interest rates.  2021 has already seen the highest level of completed home sales since 2007.

The number of buyers moving to the region from London and the south has been overwhelming.  Locally we are seeing purchasers moving from the urban conurbations of South and West Yorkshire to more rural regions like Ryedale and Hambleton.  This is the result of homebuyers seeking more open space around their homes since the Covid lockdowns and employers adopting new work practices enabling more people to work from home.

Buyers currently looking for a home on Rightmove with £600,000 to spend can choose between a one bedroom flat in Wandsworth or East House, a five bedroom home in West Witton in the Yorkshire Dales.  Improving broadband coverage and remote working have made moves to rural North Yorkshire a reality for many homebuyers.

Hewetson and Johnson have sold houses at most price points this year including a village house near Scotch Corner with a fabulous annex at £2 million and a classic Georgian home near Thirsk guided at £1.1 million.  We have also seen a robust market in York, with two Grade II listed houses guided at £295,000 and £895,000, both attracting multiple bids.

Looking forward to 2022 it seems likely the shortage of prime homes for sale and continued high levels of demand will support further house price growth.  Rightmove’s December briefing reported 7 out of 10 homes listed as being under offer, and buyers were up 41% up on 2019 in November.

The Land Registry recorded annual house price growth of 13.8% for North Yorkshire to October 2021 and Nationwide reported annual growth across the UK of 10% to November 2021.  Forecasts for 2022 are remarkably positive and very few pundits are predicting negative growth for the year ahead.  CBRE are forecasting house price growth for next year of 4.5%, Citygroup 3.9% and Schroeders 1.4%.

We are predicting the prime markets across the north of the country will fare better than most. Buyers in this bracket tend to be less sensitive to interest rate changes as they are not as reliant on finance as other sectors.  The obvious threats to the economy and property market will be Covid and interest rates.  We are keeping a weather eye on London too, recovery there seems slower than anticipated with growth of 6.2% (Land Registry) for the year to October. If The Capital “catches a cold”, unfortunately the rest usually follows.

We have a fabulous book of houses to launch in the Spring and most will be ready to preview in the new year.  Do contact Ben Pridden if you would like to hear more about our new houses or are thinking about a sale in 2022.