Property Market Round-Up & What to Expect in 2022

As 2021 comes to a close, we can safely say that it’s been one of the busiest years on record for White & Brooks, with property sales across Chichester and Bognor Regis keeping our teams incredibly busy and prompting us to grow our team. 

Although there are a few weeks to go until the final numbers are crunched, we are likely to see the success of 2020 repeated in 2021, when Chichester scored particularly high for the number of properties sold. We’ve already seen a 30% increase in the number of property transactions we have facilitated from our branches, many of which have sold for above the asking price. 

Bidding wars for coastal properties and homes with large gardens were especially evident, as buyers entered the race for space, motivated by various lockdowns. There was also heightened interest from people relocating to West Sussex from London and other cities, as the working from home trend became a permanent fixture in our professional lives.  

Of course, transaction numbers were bolstered by the Stamp Duty holiday that, in turn, pushed prices up. At one point, Chichester was named one of the least affordable cities to live in but it’s crucial to point out that the city experienced slower house price growth (and even a dip at one point) than other areas of West Sussex.    

With home movers spurred on by a desire to change their lifestyle and location in 2021, we supported a variety of buyers with wide-ranging budgets, from first-time buyers to families needing large detached homes and retirees wanting a peaceful seascape. 

So, what’s in store for 2022? 

House price growth will slow 

The latest figures from the Office for National Statistics shows an annual price increase of 11.8% over the last 12 months. This means the average property will set buyers back over £30,000 more moving forwards. In Chichester, the increase has been more modest, sitting at 8%. 

Following the end of the Stamp Duty holiday, there is still plenty of appetite from buyers and it will remain a sellers’ market. The first half of 2022 is set to be stable, without any dramatic peaks and troughs, and house price growth will slow to +3%, so sellers may need to adjust their expectations. 

The race for space will continue

People may be returning to the office but it has not dampened the desire for many owner-occupiers to get as much bang for their buck with their next property purchase. Even younger buyers are saving that little extra to bypass flats and move straight to houses in 2022.

Gardens or close proximity to public outdoor spaces will continue to be high on the priority list and fortunately, we are able to cater for that in droves in Chichester and Bognor Regis. People are also seeking large reception rooms or an extra bedroom to accommodate versatile living - work from home stations one day and entertaining space the next. 

Relocations and staycations will remain

While the exodus from bustling cities has slowed and many workers return to the office, at least for part of the week, we are still expecting a high number of buyers who are looking to relocate to the West Sussex suburbs or seaside. In 2022, these people will be families or those nearing retirement who bring forward their plans. 

We also expect sustained interest in holiday home purchases, with investors hoping to cash in on the staycation trend and second home owners looking for a guaranteed place to spend a weekend at the waterside. While international travel restrictions have been eased, the picture is changeable and we get the sense that demand for domestic holidays is here to stay. With the initial holiday home rush peaking in 2021, we’re hopeful that more stock will become available in 2022.  

Cost of living and mortgages will rise

We are currently experiencing a cost of living crisis, with the rate of inflation set to reach 4% in 2022. Soaring energy, food and fuel prices, partly exacerbated by supply chain issues, means people will have less disposable income. As a result, we are finding buyers are much more energy conscious, looking for greener homes that cost less to heat and power. 

With borrowing costs expected to increase too, some buyers will hope to buy property in early 2022 before any major changes have the ability to impact long-term affordability – especially if they can fix a mortgage at an attractive rate for two or more years. 

Christmas might be coming but there’s no time like the present to start your property journey. Whether you’re looking to buy or sell, contact one of our agents today.