Yet matters have been different this year as the various lockdowns have caused a surge in house buying right up until when the Christmas edition of the Radio Times goes on sale.

So, the question is, how will 2022 look regarding the Ramsgate property market?

The last couple of years in the Ramsgate property market have been different in many ways. So much so, many Ramsgate homeowners are presently deliberating whether they should put their Ramsgate home on the market in January or wait until later in the summer.

Speaking to many Ramsgate buyers and sellers, (and in fact Ramsgate buy-to-let landlords) in the last couple of weeks in the run-up to Christmas, many were asking the very same question.

Some people asking this question are Ramsgate buyers troubling themselves that they are about to buy their Ramsgate home just before a potential property crash, yet others are Ramsgate homeowners wanting to know where the top of the market is before they sell. Even a handful of Ramsgate landlords unable to either start buying or start selling some of their rental portfolio.

Therefore, let’s see what has happened in 2021 to make a better judgement of what should happen in 2022.

Nobody has a crystal ball that can tell what 2022 holds, however most property experts are not forecasting doom and gloom for the British property market.

 

Although that is only up to October 2021, so numbers will be much higher once all the final counts are in by March/April.

The pandemic made many Ramsgate families re-evaluate what they wanted from their Ramsgate home, with many wanting bigger rooms (and more of them). Many in the press dubbed this ‘the race for space’, meaning the property market was flooded with home buyers, most bringing forward the home move they had planned between now and 2025.

The issue was, there weren’t enough Ramsgate properties on the market to satisfy every Ramsgate buyer, meaning Ramsgate house prices have unsurprisingly been driven up.

 

Although it is still premature to say what will happen in 2022, most property commentators seem assured that we are not heading towards a house price crash, mainly due to one reason.

There aren’t enough properties on the market in Ramsgate. Simply supply and demand economics!

The property crash in 2008 was caused by everyone dumping their property on the market.

And I can’t see that changing for 2022.

In 2007, mortgage interest rates were 6.5% to 7.5%, so when the economy started to falter, everyone looked to sell their homes to reduce their outgoings as unemployment rose by over 60% in just a couple of years. This time round most people have mortgage rates of around 2% to 2.5% and unemployment is dropping, meaning they don’t need to sell their Ramsgate home.

Now of course the stamp duty tax holiday came to an end months ago, and Bank of England base interest rates are expected to rise moderately in the coming year, yet not to the level they were in 2007 (5.75%).

Nonetheless, demand for Ramsgate homes will still be there. I have even read some reports suggesting that more than 20% of British households are seriously thinking of moving between now and the summer of 2023, and this will support Ramsgate house prices whilst demand continues to exceed supply.

Another reason why I believe that will be the case is the return to home working. If, as a country, we will need to work from home each winter for the foreseeable future because of new variants, then this will cement the need for people wanting to move home for remote working. 

It might be that Ramsgate buyers are looking for a dedicated office at home or that they feel they now no longer need to be in large built-up areas that are near to their work. 

This increase in Ramsgate house prices is expected to entice even more Ramsgate house sellers onto the market, which will steady Ramsgate house prices slightly (as supply increases), yet I still believe there won’t be enough properties coming onto the market to satisfy the colossal demand.

Rents tend to grow in line with tenants’ wages. So, with many people getting decent pay rises and not enough properties being built, many economists are suggesting rents will be 14% to 19% higher by 2027. Even with the house price growth, the numbers for rental investments still look rosy.

This rise in Ramsgate house prices has had many people asking whether 2022 is the right time to buy their first home? Should they buy now before Ramsgate prices rocket even further or delay in the hope that house prices come back down? 

As with any important decision in life, this will mainly depend on your own personal life and your motives for wanting to move. 

If the Ramsgate home that you want to buy is on the market, available and you can afford the mortgage, then delaying could be detrimental. It’s like holding off for the ‘next generation TV’, it then coming out; then just as you are about to buy the TV, the next ‘next generation TV’ gets announced for six months’ time ... and the cycle is constantly in motion – so you end up never buying a TV … just like you will never buy your own home!

Sometimes you just have to make your decision, get something bought and start the journey of the next 25 to 35 years of living in your family home whilst paying off your mortgage.

The present low interest rates for first-time buyers means that there are some very low mortgage deals available for those with a decent deposit, making it a good time to buy a Ramsgate property, especially if you fix the interest rate.

If your deposit is humbler, the Government’s 5% deposit mortgage guarantee scheme will still enable you to buy a property, albeit at a slightly higher interest rate.

Looking at the bigger picture, these are only my opinions. If inflation doesn’t get too out of hand and interest rates don’t go above 2% to 3%, it looks like Ramsgate house prices will, for 2022 and a few years beyond, continue upwards albeit with a slower trajectory than 2020/21 and probably with a few short, sharp up and down spikes on the way.

The bottom line is, ensure that any Ramsgate house move that you intend to make is something that you can afford, allow for future rises in interest rates and make plans for as many eventualities as possible. Do that, and you should be just fine.

These are my opinions – what are yours?