Getting into property investing in 2022
Now that 2022 is finally here, many predictions of a slow-down in the market together with a stabilising of property prices seem to be ringing on deaf ears.
Certainly, with demand for property still outstripping supply in the UK there doesn’t look to be any flattening off of either transactions or prices. So if you’re considering getting into property investing in 2022, read on.
Property to ‘increase by 3%’
In fact, many lenders in particular, predict property will rise by around 3% next year. The Nationwide is forecasting 3%, while upmarket estate agents is even more optimistic with 3.5%. Property portal Zoopla also predicts a 3% rise over the next 12 months. Only the Halifax is more reticent with just 1% of an increase.
But even that 3% rise is small change compared to last year’s 10.2%. This brings the price of the average property in England to £285,000, according to the Office for National Statistics (ONS). The cause, of course, being attributed to both the pandemic’s ‘race for space’ and the tax savings of chancellor Rishi Sunak’s Stamp Duty Holiday.
A Nationwide survey back at the beginning of summer last year showed that one third of house owners who planned to move were looking to change location. Whilst 30% wanted a garden or easier access to outdoor space. Norfolk is, of course, an area where there is an abundance of space – both rural and coastal. It also happens to be where the team here at Agile operate a Joint Venture property opportunity.
Norfolk to ‘do well’ in 2022
And we’re not the only ones to see the property investment potential in the area. Kate Eales, head of regional agency at Strutt & Parker, predicted coastal villages, in particular, would see an upsurge in buyers for 2022.
She added: “Going in to next year, less-traditional locations in the likes of Norfolk and Herefordshire could be the biggest winners. This is due to buyers becoming more confident being further from London.”
Even the edging up of mortgage interest rates – from 0.10% to 0.25% by the Bank of England last month – doesn’t appear to be putting off buyers.
Some of those buyers will of course, be property investors. And no wonder – the average buy to let yield in Norfolk is still around 4%. In Norwich it’s higher at around 4.7%.
Commercial to residential strategy popular
It’s not only residential housing investors are targeting; commercial to residential conversions are big news these days as well. That’s for two reasons – firstly there are more offices and retail units around thanks to movements brought about by the pandemic.
And secondly, it’s far easier to alter since planning permission isn’t now required for conversions of this nature. The only anomaly in the region is in Norwich where councillors are concerned that 30% of office space has already been converted and they are seeking to add an Article 4 directive.
Get in touch
If you are new to property investing and keen to get involved then contact us here at Agile Property Partners for a chat. If you’ve been around the investing field for some time and looking for a partner, then we want to meet with you too. See what we can offer you right here.