Steve Byrne of LPC Invest gives a quick review of what’s been happening in the property market!
“I can’t honestly remember a year like last year for property investment. Despite all the COVID restrictions, doom, and gloom surrounding the economy, property prices continued to rise, and demand remained consistently high throughout the year.
The Office for National Statistics reported that house prices in the UK grew by 10% in the year to November 2021. Savills, a leading property agency, has reported that while transactions and price growth will continue into 2022, they won’t rise as sharply as the previous year.
Despite slowing price rises, there remains much to be positive as they will not fall or suffer a sharp correction as has happened in previous years. In fact, during 2022, there are two regions that will show a strong price growth and one of them is the North of England.”
A key reason for this is that there is still capacity for property growth which is being driven by consumer demand and a serious lack of supply or shortage of quality units in key areas.
Last week, (9th Feb 2022) Boris Johnson has said that COVID isolation will end this month. The lifting of another major restriction will be one of the biggest returns to normality since lockdown started in March 2020 and is a further shot in the arm for the economic wellbeing of city centres.
Having already announced the abolition of compulsory mask wearing and COVID passes, this is a real incentive for workers to return to the office as people are longer required stay at home.
City centres have already started to show the effect of this return to “normality.” Zoopla reported that demand for properties in cities such as Manchester has doubled in Q4 of 2021 compared to the Q1 2021. Despite the pessimists saying the end of stamp duty relief would bring the housing market to its knees, there hasn’t in fact been any slowdown in property demand.
In terms of rental demand, the DPS (Deposit Protection Service) has declared that UK rents have increased for the fifth consecutive quarter in Q4 2021 as demand outstripped availability. This is further supported by the Bank of England who believe that rents could see a 6% increase by the end of Spring.
LPC Invest has also had a busy start to the year launching several new developments including some stand out projects in Manchester city centre and Liverpool, two high demand property hot spot locations.