2021 represented one of the most fascinating years for the UK property market. Outdoor living space, hybrid working conditions, stamp duty holiday's and covid created an unusual set of economic conditions that stimulated a strong market hampered by a short supply.
With travel restrictions limiting movement, a focus has returned to many local town centres. As such, a growing number of local suppliers and artisan businesses have found their niche. What most people appear to be looking for now is a community setting that delivers good local services and amenities and a well-connected social network through outdoor space and communal recreation. As developers begin to plan the next five years of projects, these new needs will be included in any future project.
To best understand this shift and establish how the market might develop over the coming months, we need to look at the numbers.
10% House price growth
A strong figure for house price growth over the previous 12 months, and an indication that we may see prices climb even further with demand still far outstripping supply as we enter March 2022.
5.3% Rental price growth
This figure represents a real turn in form for rental prices, with much of the market-facing decline over the previous 24 months due to covid. Demand for rental property continues to break records, as many seek to forge their path away from family homes. The 21 – 30 age range represents the fastest-growing demographic, with more than 41% of rental inquiries coming from that group.
-46% available letting stock
As people flood back to the rental market, available stock levels have dwindled quickly. Exacerbating the situation further was the decision by many would-be landlords to sell their portfolio to take advantage of the stamp duty holiday.
44% corporate let demand growth
Corporate demand for rental properties has surged with the reopening of the economy. Despite many choosing to utilise hybrid working, employers still have a strong position that teams need to meet in person. With many working from home for more than two years at the family dinner table, it's clear that some employees will welcome the return to the office.
10.6% rural house price growth
Because of increased demand for country living and the corresponding supply problems in 2021, the annual growth rate in The Prime Country House Index reached 10.6% in September. This is one of the strongest results since the 2008 property crash—many of these indicators signal growing confidence in the UK property market and a continued issue with supply.
With rental prices hitting record highs, landlords will look to snap up any potential rental development. With Elavace launching prime city-centre developments like Bastion Point and Copper Box, now more than ever is the time to register your interest.
