2022-03-22-莱坊-UK_Residential_Property_Market_Update_March_2022_2页_265kb

UK Residential Property Market Update Summary (March 2022)

Core Content

The UK residential property market experienced a strong performance in February 2022, driven by high demand and limited supply. Despite the reinstatement of stamp duty, homeowners continued to move, and buyer interest remained robust. Both house price growth and rental value increases reached significant levels, with prime London areas leading the trend.

Key Market Trends

House Price Growth

• Halifax reported the fastest annual house price growth since 2007, at 10.8% in February.
• This marks the eighth consecutive month of growth, with an average one-year increase of £27,215, the largest in over 39 years.
• Nationwide noted a similar trend, with annual house price growth accelerating to 12.6%, the strongest since June 2021.

Market Momentum

• RICS data indicated that buyer enquiries increased in February, with a net balance of +17, showing six consecutive months of positive sentiment.
• However, new sales instructions fell to -4 in February, the only negative reading in the past year, suggesting a historic supply shortage.

Transaction Activity

• There were close to 107,000 UK residential property transactions in January, higher than the 2019 average of 98,000.
• Mortgage approvals in January reached 73,992, the highest since July 2021.

Prime London Sales

• Prime London areas saw multi-year high annual price growth in February.
  • Prime outer London experienced a 4% rise in prices, the highest since May 2015, with 11 consecutive months of growth.
  • Prime central London recorded a 1.9% increase, the strongest since July 2015, driven by the return of overseas buyers.
• London sales growth in February reached the highest level since 2015, indicating a strong recovery.

Prime London Lettings

• Rental value growth in prime London markets reached record highs in February.
  • Prime central London saw an annual growth of 23.3%, while prime outer London recorded 19%.
  • These figures highlight the sharp decline during the pandemic, with average rental values 6.8% above pre-pandemic levels in central London and 6.2% in outer London.

Country Business

• The UK housing market remains resilient, with high demand and low supply continuing to push prices up.
• Supply outside London is depleted, following a record year in 2021, leading some sellers to hesitate in listing properties.
• Market valuation appraisals increased by 6% in February compared to the five-year average.
• New prospective buyers outside London rose by 39.5%, and offers accepted increased by 42.9%, both the strongest readings since April.

Price Change (Three Months to January vs Q4 2021)

Source: Knight Frank Research

Contact Information

For property advice or inquiries, contact:

• Chris Druce – Senior Research Analyst
  Email: chris.druce@knightfrank.com
  Phone: +44 20 7861 5102
• Tom Bill – Head of UK Residential Research
  Email: tom.bill@knightfrank.com
  Phone: +44 20 7861 1492

Disclaimer

Knight Frank Research provides strategic advice and forecasts to a range of clients worldwide. This report is for general information only and should not be relied upon for decision-making. No liability is accepted for any loss or damage resulting from its use. Reproduction of this report is not allowed without prior written permission from Knight Frank LLP.