I want to say a big thank you to the team behind Flambard Williams as there are a lot of cogs that turn here so a big thank you to all the clients and our team members.
So let’s have a recap. Well, the reality is it has been a fantastic year for the property market. In the last 20 years of being in the property market, I have never seen such a transformation in outlook from so-called professionals stating that the market will plummet to the same professionals saying the market will rocket.
Only this time last year we were about to head into another lockdown and more doom and gloom was around the corner. However, as soon as it was lifted the market boomed and we are where we are today.
Manchester | Liverpool | Birmingham | Kent
How is the Market Finishing Up?
Well of course we have another month to go and we won’t see the final month but the reality is the North West has out-performed the rest of the country comfortably.
Was our 2021 Predictions Correct?
Well, the answer is yes and no. No, because we certainly did not predict as much of a rise as we have seen. If someone had said Liverpool would increase by 10% then I would have thought they were dreaming, but that is what happened.
So where were we right? Well we bucked the trend and stated that the market would still rise when every other so-called expert, including the Bank of England, said the market was going to drop up to 16%. We stated a 3-4% rise in the market as the fundamentals we talk about in every webinar remained the same.
So what about 2022. Well, we are going to revert back to our 2021 predictions and say anywhere between 3-5% depending on the area is where we feel the market will be. There will be certain things that weigh heavy on the market and certain points that push it forward.
The main drawback is going to be what we know already, inflation and the need to increase that interest rate. If we see interest rates push back close to 1% which is not unreasonable then we will see a certain number of buyers outpriced.
I believe we still see a restriction in the supply of both ready now and new build stock whilst demand will remain pretty consistent. This will give the market the jolt that is needed and keep things on track for that 3-5% growth. Add this to a 4-6% NET income figure and you have yourself a great investment. There are not many investments making 10% that are as stable as the property market.
Importantly the reality is, as long as you hold the property for the medium to long term you can confidently say that you will have a great investment. There has not been a period where the market has had a prolonged downward spiral and remained low in city centres. We have seen negative equity in pockets of the UK for years but not in the city centres.
Overall, 2022 is set to be another great year.
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