UK property market forecast 2022: impact on estate agents

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The past few years have been tumultuous for the real estate market and so it is essential that real estate agents are prepared for the future. Here, Online Mortgage Broker outlines predicted real estate trends and discusses what’s in store for real estate agents in 2022…

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1 A reduction in the number of owners buying to let

Due to tax changes introduced by the government, it is becoming more and more difficult for landlords to own properties and rent them out. As a result of these tax changes, many rental owners are experiencing steep tax and stamp duty increases, forcing many to exit the market altogether.

Additionally, after a difficult year for owners due to the widespread effects of the covid-19 pandemic, with more than half of the owners thus losing rental income, the future of landlords is increasingly uncertain.

Uncertainty around tax changes and the worry caused by a difficult year to a reluctance to rent to those on benefits, many professionals believe that 2022 could be the year of the property shortage.

What you can do to prepare

Real estate agents could see a significant reduction in the number of owners buying to rent. This can impact the success of the business and as such needs to be addressed.

The best way for agents to reduce the effect of rental owners exiting the market is to stay up to date and in touch with what’s happening in the industry. Every real estate agent knows that the real estate market is constantly changing and the more you know about these changes, the more effective you will be in retaining these very important owners.

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2 The rising cost of living

Unfortunately, the cost of living in the UK continues to rise and 2022 will be no different. Between property shortages and additional taxes, the affordability of properties will be greatly affected.

This can make it difficult for first-time buyers to access the property ladder. It can also mean that low-income households may struggle to find a suitable rental property that falls within their price range.

However, Pete Mugleston, Managing Director and Mortgage Advisor at Online Mortgage Advisor says potential buyers should stay positive.

“As Britain struggles to find its feet in a new normal, it’s all too easy for house hunters to get carried away with pessimism and simply assume that the current financial climate has forced them to put their vacations on hold. projects,” he said. .

“That’s not necessarily the case. The mortgage market has been resilient throughout the pandemic and the green shoots of recovery are already beginning to sprout. »

What you can do to prepare

Estate agents may find that the rising cost of living makes it difficult to move properties. They may struggle to find tenants willing to pay higher rates, just as it becomes harder to find rental landlords willing to pay the additional taxes.

As demand for properties continues to soar, the rising cost of living will make it harder for people to afford the types of properties they want, which could mean real estate agents face challenges. complaints from potential buyers and tenants.

It is also likely that owners will want to negotiate agent fees to compensate for the increase in their tax liability. So, real estate agents must be ready to sell their services and win the best deal.

To be successful with your upsells, you need to know your customers and what they are looking for. Once you have established this, then you need to know how you can meet their needs and how your services go beyond your competition.

Your customers want a connection. They don’t want to be treated like a number on a piece of paper. Successful upselling starts with relationships. The more time you take to understand your customers’ needs, the more they will connect with you and trust you. Trust breeds loyalty. When you have a good relationship with your customers and they trust you, it becomes easier to upsell and win the best deal.

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3 More people ready to move

One of the ways the coronavirus pandemic impacted the lives of individuals was in their personal decision-making. With calls from employers for staff to work from home, with distance learning and physical separation from family and friends, the pandemic has left many thinking about the future and what they want. do with their lives.

As such, the real estate market has seen a huge increase in the number of people moving from the city to the countryside. There was a greater call for larger properties, as well as single-family homes with driveways and gardens, as people reevaluate their lifestyles and trade apartments living in crowded cities for space and a reconnection to the community.

As we continue to grapple with the changes and impact of coronavirus, it is estimated that 2022 will see many more people moving across the UK.

What you can do to prepare

Estate agents are likely to receive a massive influx of people looking for properties. Demand for semi-detached and detached properties with plenty of space to live and work from home, as well as ample garden space, is expected to increase.

Real estate agents should be prepared with a diverse portfolio of potential properties. In order to diversify your portfolio, you may need to increase your coverage area. For example, if you want to advertise more country houses, you need to extend your services to the countryside.

The same goes for apartments in the city. Is there an area that you are not yet serving that could be lucrative in terms of potential properties? You must also be open to accepting properties of all types. Don’t limit yourself to commercial properties or family homes.

Accept all kinds of properties, from bachelor pads and student accommodation to office complexes and vacation homes. The more you have to offer, the more customers you will attract.

Photo: Bench Accounting on Unsplash

Photo: Bench Accounting on Unsplash

4 Foreign students return to vacant properties

Properties that were vacant during the pandemic, as international students returned to their families before lockdowns fell, will be occupied again.

As lockdown restrictions ease and travel between countries resumes, for the most part we will see properties that had been idle in 2021 being picked up again by returning international students. This will result in a renewed vitality and enthusiasm for the real estate market around the university districts.

What you can do to prepare

Estate agents should once again prepare for an influx of student tenants during the summer months as international students seek to secure property before their studies begin.

This is likely to be a very busy time and properties located in town, close to local amenities and public transport, will be in high demand. Estate agents may need to hire additional staff to help cope with demand during this time.

Last words

The real estate market is constantly changing, but no more so than during the coronavirus pandemic. The pandemic has brought significant changes to the UK property market from which the country is still trying to recover.

However, as the year continues, many real estate agents have an optimistic outlook as there will be many positive changes in the real estate market.



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