Guy Gittins, London CEO and international residential real estate specialist, Chestertons, spoke exclusively to Express.co.uk about whether home buyers can expect property prices to continue rising by 2022 over the next year. After Chestertons researches trends, traffic, and buyer activity, including new buyers entering the market, Chestertons can try to determine where the market is headed.
âThe momentum has stayed at a higher level than we’ve ever seen before,â he said.
The market slowed in July / August, which Mr Gittins attributed to some Brits finally enjoying a well-deserved vacation after months of travel restrictions.
What the real estate specialists hadn’t expected, however, was a return of buyer appetite in September.
He went on, âIn fact, the number of shoppers from that point on almost exceeded what we saw in 2020 at the same time of year when we had the added incentive of the stamp duty vacation.
“And what does it all mean? Well we are still seeing this trend.
âNow, as we sit here, we can still see that the number of new buyers in the market is greater than ever. Even bigger than we saw in 2020. “
Gittins believes this current momentum will continue through 2022 due to the volume of new buyers entering the market.
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He added, âThere is absolutely no doubt because that generally gives us about six months of really good visibility.
“I am convinced that we will continue this price growth, probably at the same rates as in 2021.”
But why, apart from buyer demand, will property prices keep rising?
Mr. Gittins said that there is another interesting dynamic emerging from current market conditions – the number of properties available is now starting to decline.
“London as a whole is probably about 15 to 20 percent below the normal average number of properties available,” he said.
Put simply, there are more buyers than ever and fewer properties.
The real estate expert said this was creating “price tensions” and buyers “fighting over the properties”.
He continued, âThis is what is slowly making prices go up.
âWe firmly believe that this trend will continue at least in the first six months of 2022, because we have transparency for that.
âI also believe, and I think many other major real estate agents all agree, that we are now likely to see long-term price growth of three to five percent a year in the London market again.
“For the foreseeable future, certainly in the next two or three years.”
Mr Gittins said he was surprised there are now more shoppers than ever, considering that last year many shoppers wanted to take advantage of the stamp duty holidays.
But basically, people choose to move.
âUltimately, saving stamp duty is nice.
âBut with or without that, these people moving and the buyers who register to view homes have made that decision, and when they have made that decision, it really is a need-and-want-based move.
“This is really what keeps Scott going.”
Chestertons is a London-based and international specialist in residential real estate.
The company has one of the largest branch networks in London with 31 locations in the capital from Richmond to Islington, Kensington and Knightsbridge.