What Does 2022 Hold For You And Your Home In West London?
This 4 minute read discusses the upcoming challenges the London property market faces in 2022.
With every new year we have expectations of the year ahead; we always hope it is better than the last, and during a pandemic we wish that even more. Yet, as we know, there will be a few challenges for us this year as economists predict that our living standards will deteriorate .
But there is also some light too, whether you’re looking to move home or stay
put, it is always good to be prepared. Our team at Shaws Kensington have come
together to give you an insight into what 2022 holds for you and your home in London.
Base rate increase
If you didn’t have your eye on the ball last month, you may have missed the Bank of England’s surprise decision to increase the base rate to 0.25% from 0.1%, after the Monetary Policy Committee approved the decision. This is the first rise in more than three years. How does this affect you? The central bank uses the base rate to charge other lenders and banks when they borrow money, which in turn influences the rate at which you borrow and savers earn. This may only equate to a relatively small increase in your monthly payments for those with a variable rate mortgage, and if you have a fixed rate deal you can breath a sigh of relief as you are protected for now. Should you be looking to secure a new mortgage you will find that the rates are higher.
Buying a home
If you were looking for a home over the last 18 months you will know you have been caught up in a frenzy where available properties have been few and buyers many. This lack of supply over demand saw house prises rise and many buyers missing out on properties and even not even getting a viewing. We predict that this year will see things starting to balance out a bit. We have already seen an increase in requests for valuations from sellers in West Kensington. It’s not just us that have seen an increase in valuation requests, Rightmove have also stated that they have seen a 19% increase in requests compared with this time last year. We’re excited with the range of homes that we predict will be coming on to the market in the new few weeks.
Selling your home
Last year was most certainly a sellers’ market but we do believe this year we will see more stability in the London housing market, although we still expect it to be strong for sellers. "If you do decide to sell your home in the new year, your chances of finding a buyer are very high, as we’re still seeing huge levels of buyer demand, and not enough homes available to buy”, according to Rightmove's property expert Tim Bannister. We have many buyers registered with us at Shaws Kensington who are still looking for their first or next home. If you’re curious about the current value of your property or thinking about moving, give our team a call.
Make your finances a priority
Regardless of what ups and downs this new year will bring, you have the power to get yourself in a healthy position financially. We can all make small changes here are there that can help towards a deposit, a new bathroom, or even simply improving your quality of life. When is the last time you did a rigorous assessment of your outgoings? You will be surprised by the number of people who don’t realise they are paying small subscriptions out for one thing or another every month. Be frugal about shopping and more so about what you waste – every positive change you make at home will have an impact one way or another to your monthly finances.
What is in your 2022?
New year plans and resolutions can often change or be put on the back burner as life takes over, but whatever you do this year, always keep a watchful eye on what’s happening financially around you. Placing yourself in a financially savvy position will only be of benefit when you decide it is time to move home in London and when that time comes, we will make sure that your money is invested wisely.