Market update and outlook for 2022:

Sales

• As of the start of October 2021, there has been 1.5 million house transactions. This is up from an average of 1.2 million.
• Property prices have increase by 10.8% on average
• The largest average increases were seen in the north of England with North West at 9% increase and North East at 6.7%
• The Isle of Wight's property prices have increased by an average of 17% over the last 12 months

Lettings

• There has been National growth of 6% - the highest in 13 years!
• There is 43% Less stock on a 5-year average
• There has been a 43% increase in demand
• The South west has the highest average increase of growth at 9%

Headwinds

• Lack of availability puts off potential sellers
• Sellers’s expectations can become unrealistic
• Raising cost of living
• Modest increase in mortgage rates will change sentiment in market, although they are still competitive

Outlook / Headwinds for 2022

• 22% of the population will still be eager to move with a large increase in home ownership
• Competitive mortgage rates will encourage further investment and ownership
• A modest price increase of 3% is expected
• A revert back to an average of 1.2 million transactions
• Demand should remain strong

?Demand expected to outweighing stock

?Projections of a further average increase of 5.8%

?With the demand outweighing availability there is likely to continue to be a substantial difference between rental availability and demand, driving the investment market forward