HMRC has reported today that the number of property transactions in the UK in October as 76,930. This is down 52% on property transactions in September 2021.
We all know the root causes for this:
The ‘buy now whilst stock last’ deadlines clearly created a stampede to getting property transactions completed before the two deadlines.
That said, property prices are still hittng all time highs mainly due to the shortage of properties available on the market compared to ‘seekere’ i.e. people looking to buy property.
We do not see this lasting into 2022 when the withdrawal of government covid-19 support finally stops and people or businesses adapt to ‘trading on their own two feet’ without support.
Inflation is going to squeeze peoples spending power throughout 2022 that will also squeeze property but we then expect wage demand rises to follow resulting in higher pay for some and companies fiolding for others as wahe and materials inflation take hold. This should then support current property prices, so we believe there will be property prices falls but not to pre-pandemic levels.