Our Guide to Property Buying in 2022
22nd March 2022
22nd March 2022
The last couple of years has been a bit different (to say the least!) in the property sector. With the pandemic, lockdowns and frequent rule changes, it was a hectic time for us all. But that didn’t deter people in the UK from continuing to buy and sell their properties, with millions of people moving home to try and take advantage of the stamp duty holiday.
The stamp duty holiday ended in September 2021, but interest levels in moving home remain high. So, what can we expect when it comes to property buying in 2022? Here’s what our Devon estate agents had to say:
With more and more of us working remotely and no longer having a physical office to occupy, it means that homebuyers are willing to look further afield for their properties. With many property experts predicting 2022 is to remain a sellers’ market for at least the first quarter, buyers may want to look further afield to see if they can get more for their money.
2021 was dubbed as ‘the race for space’ with the pandemic causing house hunters to look for larger properties where they can fit everything under one roof – including being able to work and exercise from home. It is predicted that this type of ‘pandemic-driven’ house hunting will continue into 2022.
The average cost of a detached house rose by 14% in 2021, with experts predicting a further increase of around 5% in asking prices, so if ample space is of importance to you, it is likely to come at an increased cost.
It is a term you might have heard of before but being a ‘power buyer’ in a seller’s market could make a real difference this year. Due to increased competitiveness in the housing market, being in the best possible position as a buyer could be the difference between getting the house of the dreams or missing out completely.
So, what is a power buyer? Essentially, it is someone who is in the strongest position to buy, meaning they have already agreed to a sale on their own property, or they have no chain at all. So, if you are a cash buyer or you are selling a property and it is sale agreed, let your estate agent know and they can help to get you into pole position.
Foreign travel has slowed in recent years due to the pandemic, meaning more and more of the UK have taken to going on staycations – holidays in their own country, but far enough away from their own doorstep. This shift has seen an increase in interest of people looking at second properties to use as holiday homes.
If you are looking to purchase a second property for use as a holiday home, here are some things to be aware of:
· When you buy a second home, your original property becomes known as your ‘primary residence’ for tax purposes. Your second home is then known as an ‘additional property’. You have to pay more stamp duty on your second home than you do on your primary residence.
· The second property will also be liable for capital gains tax when you come to sell it, meaning if it increases in value beyond your capital gains allowance (which is currently £12,000 per person) you will have to pay a percentage of the increase as tax.
Despite global uncertainties, rising energy costs and growing inflation, the market in 2022 has shown continued strength and resilience. This is being driven by a significant number of buyers agreeing sales on their own property and keen to secure their onward move, those still living in rental properties following not attaining a purchase last year often due to frenzied bidding wars, and the buoyant second home market in the South Hams.
Buyers are desperate to see fresh properties come to the market and when they do, they attract significant interest. If you are hoping to buy in 2022, having a close working relationship with agents in the area you are searching in is important, so they are kept up to date with your buying position and requirements to keep you well informed of new instructions; the market is fast paced so keep a close eye on your property email alerts and react quicky!
If you are thinking of selling, ensure you choose an agent who will provide maximum marketing exposure for your property using professionally taken photographs to showcase it in its best light; this will help generate that competitive interest that sellers are so keen to maximise. Also don’t forget selling a property for many can feel quite unsettling, so choosing an agent that can support you attentively through that process really helps with the overall experience. It’s something that Marchand Petit holds at the heart of all we do.
If you think 2022 is the year for you to buy a new property, please get in touch with our estate agents for more information on how we can help you!