2022 Property Predictions and How to Make Your Property Dreams a Reality
Well, the last couple of years have been interesting, eye opening, life changing, unpredictable, messy, inspiring, scary and there’s been a whole lot of winging it, taking deep breaths and hoping for the best.
When I looked at the predictions for the 2022 property trends, I actually felt a sense of excitement for the possibilities and opportunities that await us, for a year, which I feel for all of us, will be one of growth and success (however we measure that) and for making positive changes to our lives and others through the incredible power of property.
I’m asked repeatedly if I believe investing in property is still a good investment given the restrictions imposed, taxation and the hoops that need jumping through and navigating. My answer is always YES! YES a million times over. We just have to be smarter, savvier, research a little more and get our figures in order. Where there’s a will, there’s a way, right?! (my mantra always).
And more than that, the impact we can have on multiple lives through just one property is incredible, extremely powerful and quite magical, if we do it right. I don’t think we should ever under estimate what a difference one property can have.
I want to take you through a brief overview of the predicted 2022 property trends, to reassure you that if you’re thinking of investing in your first buy to let, it’s encouraging from a financial point of view and it’s a wildly wonderful step to take.
And then I want to tell you how you can get ready for 2022 now so you’re stepping confidently into the New Year with your big plans, dreams and goals. Whilst the big day is approaching rapidly, girl, there is time to make magical sh*t happen to move you closer to achieving your property goals.
Let’s look at 2021?
In 2021, we settled into a “new normal” learning to live with “pandemic life”. As we know, life changed dramatically for us all. It changed how we live, work and use our homes.
We adapted, pivoted and it sent the property market into a frenzy. It was fast-moving (a little like the checkout at Aldi!!) and unless you were at the top of your organisational game, it was difficult to compete, keep up and seal a deal. It was unpredictable, no comparable, but as the year has gone by, we’ve started to settle into this new normal.
Throughout 2021, house prices continued to grow as a result of high demand and low supply. 5.6% growth in the first six months, with expected growth of 9% by the end of the year.
No too shabby!
So what does 2022 hold in store for us?
Whilst there is still a sense of unpredictability given the current Covid situation, things are looking pretty good.
Savills have stated that they expect transactions and price growth to continue throughout 2022, but they do foresee a stabilisation due to the extraordinary growth in 2021.
The North of England and the Midlands that are expected to show the greatest price growth, with 28% and 24% respectively over the next four years, with 4.5% and 4% growth in just the next year. they’ve become more desirable due to the redevelopment and regeneration in these areas. Big businesses have moved to the cities and relocation has followed.
As a Northern Girl that does make me happy.
So rentals….
The market is growing from strength to strength, which makes me want to do a little happy dance, mostly because it reinforces my belief that investing in property is where it’s at.
But there’s more….
According to Zoopla, at the end of September the cost of renting has increased by an average year on year of 4.6% throughout the UK, which is the strongest growth in 13 years. When you take London out of the equation (though London has seen its first growth in 16 months), the number increases to 6%.
Zoopla further states (as of September) their data indicates that the average time it takes for a property to be rented out is just 15 days with a demand for higher priced properties. This is largely due to people wanting larger properties with more space. Another indicator that the pandemic has the changed the way we live and use our homes.
According to Hamptons, it’s also cheaper to rent than buy in many areas of the UK (Including North East, North West, Yorkshire and Humber and Scotland), which is boosting demand for rental properties. Jones Lang LaSalle expect rental prices will grow by 9.5% by 2025 – so girl, this is great news if you’re thinking of investing.
More positive news – there have been exceptional price increases in a number of UK regions, especially the East Midlands, which has seen an 8% increase over the last year alone.
It’s believed that that the UK economy has faired better than initially anticipated in terms of unemployment and GDP growth. It also means that the UK property market forecast suggests rental growth is sustainable going forward.
Yay for us!
And finally, interest rates…
They’re expected to increase over the years, but it’s believed there’s enough demand in the market to maintain present day levels.
If you need further reassurance and reasons why you should be investing in property in 2022, here’s my list
Additional (relatively passive) Income Stream.
Increased financial stability for now and for the future.
Low Interest Rates and Inflation rising – money is better in property than in a bank.
Ability to make a positive impact, transforming your life and others.
Financial independence.
And I could go on and on….
So as 2021 wraps up, what can you do between now and the New Year to get yourself ready to take 2022 in both hands, truly embrace it, go all out, make glorious things happen and make the year your best yet?
ABSOLUTELY LOADS!
Reflect on the year
We get so busy focusing on where we’re going, what we want to achieve, what we haven’t done yet, that we forget to really look, value and appreciate all that we have accomplished and often without realising it, how far we’ve come. Reflecting on the past year also allows us to look at what worked and what didn’t, understand what we do and don’t want and it gives us a clear focus on how 2022 should look and feel.
My 2021 didn’t go according to plan at all, far from it. I expected to be far further ahead in my property empire building and life designing, but further delays in my Divorce and Financial Agreement delayed it. Perhaps it was the Universe telling me to slow down and lay solid foundations, work on myself and get super clear on my vision (which ultimately I did – thanks Universe!).
BUT whilst I was busy focusing on all the stuff that I hadn’t ticked off my 2021 plan, I forgot to look back at all the things I had actually achieved, my freedom (finally) at the top of that list, being free to properly launch Property Girl so I could really start to help women to invest in property as well as starting my solo journey into property, to name just a few of those accomplishments.
So I want you to take a moment to really think about your year, what you’re proud of, what aligned for you and what didn’t and celebrate your wins, because without even realising it, you’ve achieved so much and I want you to carry into 2022, the high vibey feels this gives you because you are amazing, you are brilliant and oh so capable of achieving anything you put your gorgeous mind to.
The Magic of Mindset
I know it’s something I talk about a lot. And I know some say it’s a little woo and you should just get on with taking action to move you closer to your goals, which yes you should absolutely do, BUT I genuinely believe that if you take the time to get your mindset sorted at the beginning of your journey, it will be a lot easier, they’ll be less resistance and actually, although it sounds counter-productive, you WILL get to your goal a lot quicker.
There are so many things that hold us back and prevent us from taking the next steps – normally ourselves. We get in our own way. (I’ll fully hold both hands up to this). Stepping out of our comfort zone into something unknown is unnerving, overwhelming and often we’ll retreat to what we know, what feels safe and secure, but to a place that doesn’t allow us to move forward, grow or do the things we desire.
SO, taking the time to sort your mindset and really, truly believing in yourself, that anything is possible, is crucial to successful investing and being a wildly successful Landlord Queen.
Finances
Ok, so let’s get practical for a minute….the next few weeks are a great time to get your finances in order. Knowing what you have to spend on a property, the deposit you’ll need are all essential to your property hunt. It determines the location, the type of property you’ll be able to buy and will narrow down your overall search. You may not have time to meet with a mortgage advisor/IFA before Christmas, but you could schedule a meeting for the New Year.
Create Your Property Vision
Getting super clear on who your dream tenant is, their wants, needs and desires will help focus your property search, the type of property you’re looking for and where they’d want to live. Narrowing down your search in terms of property type and location will make it a lot easier when it comes to actively looking.
Set an Intention, Write it Down and Plan it Out!
Did you know that by writing down your goals, you’re 42% more likely to achieve those goals?
And if you set an intention to go with your goal, it will determine how your property journey unfolds. It will set the tone, the landscape for your entire journey and keep you aligned with your values and beliefs at every stage. Read How to Create Solid Foundations As A Landlord Queen for more on setting intentions.
Write down your property goal and your WHY. When you’re feeling demotivated, or want a little reminder, it’s a great way to re-align yourself with your goal, dream and desire. It’ll keep you moving forward.
Set a timeline/deadline to work towards achieving your goal.
Then start writing down the initial inspired steps/goals you need to take at the beginning of 2022 – who do you need to talk to, how much time will you dedicate to achieving your goals? The bigger goals can be broken down into bitesize, more manageable steps so they feel manageable, achievable and easier to complete.
Research
Knowledge is power, right! And the knowledge gives you the confidence to take bold steps, to step in to your power and make incredible things happen. So read up and watch videos on property investment/buy to lets/being a landlord. The more you know, the more capable you’ll feel, I promise.
And finally…
Don’t put too much pressure on yourself. You are a beginner, you’re not going to know everything overnight. I still don’t after all these years. Recognise that EVERYONE was once a beginner, but this is your journey and it’s ok to go at your own pace.
Reach out to me if you have any questions – there are no right or wrong, daft, silly, weird questions. How will we ever learn if we don’t ask? I’m here to support, cheer you on and hopefully inspire and make this journey a little easier, ways more fun and exciting for you.
Download my Starter Kit, because honestly, it’ll walk you through these initial stages, help you create your property vision and plan it all out (it’s got a planner section too!), give you tips and advice on deposits, mortgage requirements, checklists and so much more.
Girl, let’s make 2022 the BEST year yet…. It’s your time to make wonderful, incredible things happen.
