2021 was probably the most remarkable year our experienced estate agent teams in St Ives and Wadebridge have ever known. Now we’re drawing breath and analysing what the next twelve months will bring. Here we share our inside knowledge, giving you an insight into the shape of the Cornwall property market as we look to 2022.
2021 was a dramatic year for the housing market
Demand for property in Cornwall increased dramatically in 2021 mainly due to changes in lifestyles prompted by the pandemic. This was further fuelled by the stamp duty holiday which came to an end in September, and low interests rates contributed too.
The pandemic changed people’s priorities in terms of their living arrangements, and working from home allowed many potential buyers from urban areas to seek more space within rural surroundings.
All this meant that property in Cornwall was hugely in demand, whilst supply remained low – no surprise then that house prices rose dramatically. House prices in Cornwall rose 13% between October 2020 and November 2021, and the average property price is now £328k. Delve into the figures in detail here.
In our own experience it was a seller’s market in 2021, with ambitious asking prices achieved and in many cases exceeded. St Ives and Wadebridge were hotspot areas, but really there was strong interest in properties all across Cornwall and at all levels of the market.
What we can say about 2022 with some degree of certainty…
There are signs that more property will come to market in the year ahead, which is good news for buyers who have struggled in such a competitive market.
It is also likely that prices will continue to grow but at nothing like the same rate. Rightmove is predicting a 5% growth nationally, though the South West is likely to remain one of the regions where the upward trend is strongest.
With the initial upheaval caused by the pandemic subsiding, we are predicting a less frenzied property market in 2022, with the usual surge of properties in the spring helping to alleviate the supply/demand imbalance to some extent.
The end of the stamp duty holiday and the expectation that interest rates will rise (and taxes too!) are all factors that should dampen down the market a little, coupled with that greater supply alleviating upward pressure on prices.
However, we can also say with confidence that despite all these factors, Cornish property will be in high demand and prices will rise, albeit not by as much. For at least the first half of the year Cornwall will still be a seller’s market; if you’re thinking of putting your home on the market you’re still likely to get a great price.
Read more about bringing your home to market in our Seller’s Guide
The unknown factors…
Until a few weeks ago we would have been talking more about the market stabilising, and our teams in St Ives and Wadebridge experiencing a bit more ‘normality’ over the next twelve months. And then Omicron arrived in the UK and potentially that changes things, we’re just not sure how yet!
As we’re once again being asked to work from home if possible, many people who had decided to stay within commuting distance of work might rethink that decision as they look to the longer term.
If there is another national lockdown looming, will things like mortgage holidays return, and will the government be able to protect livelihoods as it did previously? These are big unknowns which could significantly affect the property market – including our ability to carry out physical viewings – in the months to come.
Luckily here at Harding Laity we have innovative digital packages to help you sell your property, including detailed locations reports and lots of lifestyle content aimed at attracting buyers to your Cornish property. So another lockdown need not hold you up!
The overall health of the economy is also a big unknown. The UK appeared to bounce back strongly during 2020, but with tax increases coming and fuel bills rising, many families are in a fragile position.
There are a few other factors to mention here too. One is the balance of demand in urban and rural areas, which depends on how the pandemic shapes our lives and the urban environment particularly in the coming months and years.
Finally there’s the question of how those reactive purchases of countryside property following the first lockdown actually worked out. Some buyers may be re-evaluating decisions made a little too hastily and we may see some properties come back to market on a quicker turnaround than we’d normally expect.
As you can see we don’t have all the answers, but we hope that gives you some useful insight. If you’re thinking of moving you can browse our current properties for sale here.
If you’d like to talk to us about your individual property we’d be very happy to help you put things into context, and of course we can provide a free appraisal at any time.
So, is it time to start a new chapter? Give us a call on 01208 813874 or drop us an email at email@example.com