Property Trends 2022: What’s In Store For Estate Agents
It’s been a tumultuous couple of years for the property market and so it is essential estate agents are prepared for the future. Here, Online Mortgage Broker outlines forecasted property trends and discusses what’s in store for estate agents in 2022…
Photo: Evelyn Paris Unsplash
1 A Reduction in Buy-to-Let Landlords
Due to tax changes introduced by the government, it is becoming increasingly difficult for landlords to own properties and rent them out. As a result of these tax changes, many buy-to-let landlords are experiencing steep increases in taxes and stamp duties, causing many to exit the market completely.
What’s more, after a challenging year for landlords due to the widespread effects of the covid-19 pandemic, with over half of landlordslosing rental income as a result, the future for landlords is increasingly uncertain.
From uncertainty around tax changesand trepidation caused by a challenging year to a reluctance around renting to those on benefits, many professionals estimate 2022 could be the year of property shortages.
1 What You Can Do to Prepare
Estate agents may see a significant reduction in buy-to-let landlords. This may impact business success and, as such, it must be addressed.
The best way agents can reduce the effect of buy-to-let landlords exiting the market is by staying up-to-date and in touch with what’s going on in the industry. Every estate agent knows that the property market is always changing and the more informed you are about these changes, the more effective you will be at retaining those all-important landlords.
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 extra taxes, the affordability of properties will be greatly affected.
This may make it difficult for first-time buyers to get onto the property ladder. It may also mean that low-income households may struggle to find a suitable property to rent that sits within their price range.
However, Pete Mugleston, the Managing Director and mortgage advisor at Online Mortgage Advisorsays prospective buyers should remain positive.
“As Britain strives to find its feet amid a new normal, it’s all too easy for house-hunters to get swept up in the doom and gloom and simply assume the current financial climate has forced them to put their plans on hold,” he says.
“This isn’t necessarily the case. The mortgage market has been resilient throughout the pandemic and the green shoots of recovery are already starting to sprout.”
3 What You Can Do to Prepare
Estate agents may find the rising cost of living makes it difficult to move properties. They may find it hard to find renters willing to pay higher rates, just as it becomes harder to find buy-to-let landlords willing to pay the extra tax prices.
While demand for properties continues to soar, the rising cost of living will make it harder for people to afford the kinds of properties they want and this might mean estate agents are faced with complaints from prospective buyers and renters.
It is also likely landlords will be keen to negotiate agent fees as a way to offset the increase they have experienced in their tax obligations. So, estate agents need to be prepared to upsell their services and win the best deal.
To upsell successfully, you need to know your customers and what they are looking for. Once you’ve established this, you then need to know how you can meet their needs and how your services go above and beyond your competitors.
Your clients want 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 the needs of your clients, the more they will connect with and trust you. Trust breeds loyalty. When you have good relationships with your clients and they trust you, it becomes easier to upsell and win the best deal.
4 More People Set to Relocate
One of the ways the coronavirus pandemic impacted individuals’ lives was in their personal decision making. With calls from employers for staff to work from home, with remote schooling and physical separation from family and friends, the pandemic got many people thinking about the future and what they want to do with their lives.
As such, the property market has seen a huge increase in people relocating from the city to the countryside. There was a greater call for bigger properties, as well as for detached houses with driveways and gardens, as people reassess their lifestyle and trade in apartment living in crowded cities for space and a reconnection to community.
As we continue to grapple with the changes and impact of the coronavirus, it is estimated that 2022 will see many more people relocating across the UK.
5 What You Can Do to Prepare
Estate agents will likely receive a huge influx of people looking for properties. Demand for semi-detached and detached properties with plenty of room to live and work from home, as well as ample garden space, is set to increase.
Estate agents must be prepared with a diverse portfolio of potential properties. In order to diversify your portfolio, you might need to increase your area cover. For example, if you want to advertise more country homes, you need to expand your services into the countryside.
The same goes for apartments in the city. Is there an area you don’t serve yet that could be lucrative in terms of potential properties? You should also be open to accepting properties of all types. Don’t restrict yourself to just commercial properties or just family homes.
Accept all kinds of properties, from bachelor pads and student accommodations to office complexes and holiday homes. The more you have to offer, the more clients you will attract.
6 Overseas Students Return to Vacant Properties
Properties that were vacant during the pandemic, as international students returned to their families before the lockdowns fell, will now be filled again.
As the lockdown restrictions ease and travel between countries resume, for the most part, we will see properties that were sitting idle during 2021 be snapped up again by returning overseas students. This will mean a renewed sense of life and enthusiasm for the property market around university areas.
7 What You Can Do to Prepare
Estate agents must be prepared for an influx of student renters again during the summer months as overseas students reach out to secure a property before their studies begin.
It will likely be a very busy time and properties in city locations, close to local amenities and public transport, will be in high demand. Estate agents may need to hire extra staff to help deal with the demand during this time.
The property market is constantly changing, but no more so than during the coronavirus pandemic. The pandemic saw significant changes in the UK property market that the country is still trying to recover from.
However, as the year continues many estate agents have an optimistic outlook as there will be many positive changes that come within the property market.