The continued lack of supply and increased demand in the housing market is the prevailing factor in Quarter 1 of 2022 as we see prices remaining strong for both residential and agricultural land. Adkin affirms this position in their recent Agency Review which states that the market for residential property, agricultural land and smaller land parcels remained very strong during 2021 and they too anticipate little change throughout 2022 as demand continues to outstrip supply.
In this vein, "more stock needed" are the words permeating from the mouths of estate agents, land agents and property finders located in and around the Cotswold and Oxfordshire property market. Residential property prices, driven by a dearth of supply have continued to spiral as fierce competition for the finest country homes seemed to increase month on month in the wake of the 24 month global pandemic.
From an agricultural land perspective, prices for amenity land such as pony paddocks have continued to soar with the likes of Jeremy Clarkson, Sarah Beeny and Kelvin Fletcher endorsing and popularising farming and country pursuits more than any industry commentator ever seemed to manage.
On the other hand, interestingly enough having spoken in depth with local agents we may be starting to witness some early signs of a cooling off period in the residential property market in particular as buyers simply do not have the quantity of property to choose from in the most desirable areas. We are advised that some buyers are therefore waiting for a potential price correction and surplus in stock before committing to purchase a country home.
As ever in the property and rural land market, confidence is key. Over the last 12 months Adkin have reportedly marketed over £162 million of property which clearly represents the strength and confidence sellers are placing in agents to achieve the best results from marketing their properties. One noticeable change reported by Adkin, which we at Hedges Law have also recognised, is the reduction in Buy to Let purchases. Clearly this is a direct consequence of the changes in taxation on let property portfolios and demonstrates the impact the tax regime can have on the housing market as we property lawyers witnessed during the Stamp Duty holiday.
As we continue to service our clients we do not anticipate any change in 2022 as at the time of writing, there is no real evidence to support any change in the above sentiments. To satisfy the increasing demands and needs from our clients we are delighted to welcome a new Head of Property to the fold to play party to an increase in conveyancing instructions. Claire Hodges brings a wealth of knowledge and experience to both our forward thinking clients and our innovative firm and we look forward to an active year ahead.