2021 was a remarkable year for the property market, but as we look ahead to 2022, what is in store for the Tunbridge Wells property market, and the industry as a whole? Maddisons Residential Founder, Deborah Richards reflects on 2021 and gives some expert predictions for the year ahead. So, whether you are planning on buying your first home, investing in a rental property or considering a big move, read on for an expert’s insight into the future of property!

2021 property market review

As I reflect on 2021, I know I have lived through the busiest housing market ever seen. 2021 will record an incredible 1.5 million transactions, caused by the pandemic and the associated re-evaluation of home. People widened their search terms and took the plunge on more rural properties, in the hope of finding more space and quality of life for their families. This trend coupled with the stamp duty savings introduced in July 2020 simply added fuel to the already raging fire.

Tunbridge Wells, always a desirable destination of the coveted London buyer, became even more popular.  The basic laws of economics mean that when you have more demand than supply, prices will rise, and so we saw growth of just under 11% in 2021 (and 2020 was not too bad either!).

2022 property predictions

So, what does 2022 hold? Many feared that with the end of the stamp duty holiday, sales would fall off a cliff, but this did not happen. We, as an agency, have started 2022 with a bang, January is normally a relatively quiet period in the industry, but we have been exceptionally busy!

Property price rises: Given the relentless demand in our area and indeed around the country, I predict that prices will rise by between 3% and 5% next year. Maddisons Residential have been achieving 104% of asking prices, so if you are considering selling, get your property listed!

Supply shortages could stifle sellers: Considering the unprecedented demand, the housing stock does seem relatively low and, unfortunately this will be exacerbated by many sellers reluctant to market their property due to a fear that they will not easily find their next home. Luckily, we do have plenty coming to market, so keep your eyes peeled, and if you are feeling bold, list your home ahead of securing your onward property for a chance to capitalise on the incredible demand at the moment.

Wider financial pressures: Mortgage rates will rise, albeit only slightly with interest rates remaining extremely low. I do not expect a price crash, given the extensive stress tests mortgage providers have been doing since the devastating 2008 crash. The cost of living will increase, in fact, latest reports show that inflation is at a 30 year high! Many experts know property is a good hedge against inflation, protecting the value of wealth when compared to holding cash deposits - so property could be the way forward in such uncertain times.

At Maddisons Residential myself and the whole team pride ourselves on our relish and passion for this dynamic industry. No one can know for sure what the future holds, but one thing is certain, Tunbridge Wells remains a highly desirable place to live, with enough diverse and unique housing stock to suit everyone! If you would like to speak to our experts about the lovely local properties we have for sale, or about the wider property opportunities within the area we would love to help!