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Regional Property Market Update Winter 2022: East Midlands
Regional Property Market Update Winter 2022: East Midlands
Posted on: Friday, December 9, 2022
Market recalibration
Price moderation and a sales slowdown are likely over the coming months but should be considered in the context of economic history, the frenzied post-pandemic market and the longer-term outlook.
The Autumn Statement provided a sobering assessment of the UK economy, but forecasts for the housing market are less dramatic than during 1989-1993 and the Global Financial Crisis in 2007. Inflation is expected to peak during the final quarter of 2022 before falling back over the course of 2023, and unemployment looks likely to remain lower than the 10-year average (5.3%)¹. The Global Financial Crisis, caused by banks lending more than borrowers could afford to pay, led to the more stringent mortgage lending criteria imposed since 2014. Today, only an estimated 4.2% of homeowners have less than 10% equity in their home².
Price correction
Property price growth is moderating and price correction is forecast. At 7.2% in the year to October, annual price growth remains considerably stronger than the 3.3% average between 2010 and 2019ᶟ. Since June 2020, average property prices have risen by close to £50,000, the equivalent of 24%, with lockdown and lifestyle changes spurring the market. Single-digit price correction is predicted for 2023/2024 before price growth is anticipated to return in 2025⁴. Buyers will continue to benefit from the 0% rate of stamp duty up to £250,000 until March 2025. With almost one in three movers ‘needs-based’⁵, such buyers will present sales opportunities.
2022 is set to be the busiest market since 2017, with the exception of 2021. Zoopla estimates there are around 293,000 sales currently in the pipeline to be completed before the end of the year. Sales volumes are predicted to be around 1 million in 2023, a level more on par with the pre-pandemic norm (Zoopla, JLL). October saw a 13% uptick in new supply to the market compared to a year ago, although stock levels remain low by historic standards (RICS).
Across the East Midlands the time taken to sell a property has nudged upwards over the past month. However, at 40 days it remains considerably less than 60 days in October 2019 (Rightmove). South Derbyshire and West Lindsey are currently the most active property markets in the region.
9%, 9%, 9%
Average property prices are expected to end the year 9% higher than where they started, but this growth is set to be countered by a 9% fall in property prices over the course of 2023/2024. House price growth of 9% is then expected over the course of 2025 to 2027¹. While such predictions will undoubtedly impact the market, almost one in three movers are ‘needs-based’, prompted by personal circumstances and job changes. These people will still need to buy and sell property.
The decade to 2021 saw the population of England and Wales grow by 3.5 million and the number of households by 1.4 million. In the East Midlands the number of households increased by nearly 142,000 and the population by nearly 350,000. Early 2023 will see the release of new census information reflecting how the number of private dwellings across the region has changed.
¹Dataloft, ONS, Office for Budget Responsibility, 10-year average 2010-2019, ²JLL ᶟDataloft, Nationwide, ⁴Office for Budget Responsibility, ⁵Dataloft, Property Academy, survey of 10,000 home movers 2022
Properties for sale in the East Midlands
This well-arranged detached family residence forms part of this exclusive development of just six properties lying towards the centre of Queniborough. The property has flexible ground floor accommodation ideal for working families as the kitchen/living/dining area and lounge both back onto the gardens.
An exceptionally spacious semi-detached family home residing in a slightly elevated position with superb views of the open fields and wooded hills of the Derbyshire Dales countryside.
Steeped in history and natural beauty, the delightful village of Islip plays the perfect host to a select enclave of properties currently being developed by respected local builders Messrs CHBC Property Limited, a team of professionals with over 30 years experience developing property in and around East Northamptonshire. ‘The Green’ couldn’t be better located: from the neighbouring 15th Century Church of St Nicholas; the close proximity of the recreation ground and sports clubs; to the gentle walks alongside the River Nene towards Thrapston or Aldwincle.
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Sell your property with your local expert this winter. Contact your local Guild Member today.
