The general feeling within the financial sector is that there is no cliff edge for us to deal with. The economy and the property market are set fair for the coming year. The Bank of England will be raising interest rates this year from the all time low of 0.1%. We don’t anticipate shock rises, but small increments, which may result in a rate of 0.75% to 1% by the end of 2022.
In 2021 transactions have been high, but these will steady to about 100,000 per month. The pandemic has further to run and none of us can predict the effects of the latest wave. It seems that vaccinations are the key to the government’s strategy, and we hope that these will keep us all safe. On a positive note the latest pole released by Zoopla suggests that over 20% of consumers are eager to move this coming New Year.
In 2021 there has been a large increase in home equity, which makes room for some price growth. North Wales and Denbighshire have seen massive rises of 20% and more in. We do see this slowing in 2022 to something around 5% and Zoopla predicts that this will slow to 3% by the end of this New Year.
During recent Covid lockdowns, banks and building societies withdrew many of the mortgage products and this has now reversed and the number of products in the market are back up to pre-pandemic levels.
We are therefore cautiously optimistic and feel that the New Year will bring a lively market with more new properties coming for sale. Spring should see some of the larger rural properties also joining the market.
North Wales continues to increase in popularity and is a beautiful place to live, work and retire too, with its extensive picturesque coastlines and the stunning Snowdonia National Park as its backdrop, why wouldn’t you want to be part of this? Why not register on our mailing and receive our regular new updates and latest property instructions.