Teignbridge Property Review 2022

Last year was an exciting year for our local property market. It started as 2021 left off, with properties selling almost as soon as listed and often over guide price. As the Covid pandemic and associated restrictions subsided and we began to live with Covid, numerous buyers and sellers were keen to press forward with their plans to sell, move or buy. We found fabulous new homes for local families and incomers looking to enjoy the benefits of our area. Investment properties were also snapped up as mortgage rates were at an historic low. On the downside, conveyancers and lenders were overwhelmed, leading to longer-than-average transaction times, in some cases causing additional stress to those involved. Throughout we devoted extra resources to sales progression and keeping clients informed, but we were reliant on third parties for updates and to progress legal matters. This meant we were not able to do this as effectively as we would have liked in some instances, for which we apologise.

Levels of sales and prices achieved in our area reached record levels, peaking in July and August; our area out-performing many other parts of the country. Coast and Country enjoyed some of their best results ever, marginally down overall on 2021, but once again agreeing considerably more sales in TQ12 and being instructed to sell far more properties than any competing office. We thank you for your ongoing support and look forward assisting you this year. We were also delighted to be judged as best single office estate agency in Devon at this year’s UK Property Awards. We saw a marked change in the market in mid-September as a result of Liz Truss’ mini budget and it’s almost instantaneous effect on fixed rate mortgage rates which soared. This was combined with inflationary pressures caused by, amongst other things, energy prices increasing as a result as the Russian invasion of Ukraine and it becoming very apparent that the cost of living was rapidly increasing. The sudden interest rate hikes almost immediately stalled the property market. Some people re-evaluated their circumstances and an increased number of sales fell through, and we saw more renegotiations for a short while. Uncertainty is not helpful to the property market, house prices are linked to mortgage interest rates and buyer confidence and there was an obvious change ahead.

Having traded in all market conditions, we were able to advise our clients exactly what to do. In the first instance after a market shock, you sit back, consolidate and take stock. Levels of viewings dropped, so we had more time to progress the large number of sales in our pipeline. In most instances, buyers and sellers were patient but during this time many fixed rates mortgage schemes were withdrawn, five-year fixed rate mortgage rates rose to over seven percent, negatively affecting affordability and the outlook for the property market was very unsure. Within a month, the market was settling down; five-year fixed rates were available below five percent, there was a degree of calm and a new normality was settling in. Sales were being agreed, all be it after more negotiation and not at quite the same rate. But, of course, Christmas was nearly upon us at that point so one expected the market to be slower.

Look out for our predictions for the Teignbridge property market in 2023, on Friday.