What opportunities will the housing market bring property investors in 2022?

It’s no secret that the housing market has remained surprisingly buoyant throughout the pandemic. It is of course, part in thanks to the Stamp Duty holiday, but more so because of changing attitudes and the desire for more space – fuelled by working from home as well as nationwide lockdowns.

In fact, according to property website Zoopla, the most searched for terms for home buyers in 2020, were ‘garden’, ‘rural’, and ‘secluded’. Their data also shows that while three-bed homes are the most popular properties sought, four and five-bedroomed homes are selling 33% faster compared to previous years.

Recent figures from the Halifax Price Index also revealed that at £272,992, the average UK house price hit an all-time high in November 2021. That’s a 1% rise compared to October 2021, a quarterly rise of 3.4% and an annual increase of 8.2%.

What will happen to the property market in 2022?

Despite Stamp Duty tax relief ending in September 2021, early predictions suggest that the market will stabilise rather than suffer a dramatic crash.

However, the underlying reality is that there’s still a huge gap between housing supply and demand. Based on this, some industry experts are forecasting that the property market will stay strong.

It’s estimated that in England alone, up to 345,000 new homes are needed every year. Nevertheless, new housing stock rose by just 244,000 in the year 2019-2020. In the year to March 2021, the number of homes built fell by 17% compared to the same period the year before. Coupled with the shortage of materials and shipping delays, it’s likely that the gulf between demand and supply will continue well into 2022 and perhaps even beyond.

Other optimistic indications come from property platform Rightmove, who have already seen an increase in the number of people asking to have their homes valued, compared to the same time last year. They also predict that property asking prices will rise by around £17,000 – a 5% increase based on the current average asking price of £342,401.

What opportunities are there for property investors in 2022?

The UK housing market has demonstrated resilience in the past. This history suggests that property will continue to provide investors with opportunity. Whether that is through structures such as Innovative Finance ISAs (IFISA) or fixed return and equity investments.

Not only that, attitudes of house buyers have changed. As we all continue to navigate the pandemic, work from home and readjust priorities, it’s likely that space will remain a priority for many individuals and families who are actively seeking a greater balance between work and family life.

Furthermore, Rightmove predict that four specific regions will experience higher than average price growth. These are Scotland, the West Midlands, Yorkshire and the Humber, and the South West, where Acorn has a strong focus on development.

For us at Acorn, the South West has long been our region of choice. Not only has property demand long outstripped supply, house prices are still relatively affordable compared to other parts of the UK. Plus, with the area’s good transport links and reputation as a holiday hotspot, it’s a region that offers opportunities for both housebuilders and investors.

To support our continued growth in the South West, in 2021 we launched our sustainability initiative, Acorn Green. Our aim is to reduce the carbon footprint of the homes we build, ensure minimal impact on local environments, while providing sustainable homes fit for now and the future. With this in mind, the opportunities with Acorn, come not just from property investment, but also in enabling environmentally responsible housebuilding.

To find out more about investing with Acorn, you should be a High Net Worth Individual or a Self-Certified Sophisticated Investor. For information, contact an advisor on 0203 858 9881 or email investor.services@acornpg.org.

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Investment opportunities available via Acorn Property Invest are exclusively targeted at exempt investors who are experienced, knowledgeable and sophisticated enough to sufficiently understand the risks involved, and who are able to make their own decisions about suitability of those investment opportunities. All investors should seek an independent professional investment and tax advice before deciding to invest. Any historic performance of investment opportunities is NOT a guide or guarantee for future performance and any projections of future performance are not guaranteed. All investment opportunities available via Acorn Property Invest are NOT regulated by the Financial Conduct Authority (FCA) and you will NOT have access to Financial Services Compensation Scheme (FSCS) and may not have access to the Financial Ombudsman Service (FOS).