West Sussex Property Market Forecast 2022
The last 18 months of the UK property market have been unlike anything we’ve ever seen before. We look at what’s already happened this year, and what is yet to come.
Tim Bannister, Rightmove’s Director of Property Data, labelled the market “hectic” in its current state, but a few trends have started to emerge. One of which is that the average established property is selling at £424,000, some £32,000 cheaper than the average new build property.
Bannister also said that he has seen changes in housing needs that are largely “driven forward” by the COVID-19 pandemic, and that last year’s Stamp Duty holiday made an impact by “encouraging some movers to bring their plans forward.”
In 2021, numbers of available properties simply could not keep up with the substantial increase in property demand. This has unsurprisingly continued in the early months of this year, with the total number of available property dropping between 31% and 47% nationwide since January 2021. According to Propertymark, this “lowest-ever supply”, is the reason behind the sizable rise in house prices, which has seen the average property price in West Sussex reach £425,000 – some £88,000 above the national average – after a yearly rise of £8,100 (2%).
There was, however, a reported 80% rise in stock this January which suggests that, although demand is still outweighing available property, there is now more choice for buyers in the market. This could lead to smaller price increases and perhaps even a plateau in the coming months.
2022 is sure to bring change for tenants, too. With the cost of living rising, getting value for money is arguably more important than ever, but not just for tenants. Landlords also need to think carefully about which properties will deliver the best return on their investment(s), and that currently lies within flats and apartments.
The average flat in West Sussex costs £228,000 so, with rent prices also rising, these properties are viewed much more attractively than semi-detached and detached houses, which cost £416,000 and £674,000 respectively. Even terraced houses are not viewed as well as flats, with the average price of one of these homes sitting at £337,000.
It had been reported that one in five UK landlords were intent on selling property at the beginning of the year, with tighter legislation being a major factor in this market sector losing appeal. In fact, only 7% of the 3,000,000 landlords in the UK are intent on expanding their portfolios in 2022.
This would see 160,000 new rental properties come to the market, and we may see this number rise substantially as the potential of the rental market continues to grow as people look to rent again as we come out the other side of the pandemic. This may cause some landlords to rethink.
To summarise, prices across the board will continue to increase throughout the year, but that growth may start to fall as levels of available property continue to rise, giving each buyer and tenant more options to find the home that is right for them.
Are you looking to buy or sell in West Sussex? Maybe you’re a tenant looking for a new property or a landlord searching for your next investment opportunity? Contact your local branch today and let property experts you can trust take care of your property journey.
Content accurate at time of publishing.