Sheffield property: City houses prices may tail off towards end of 2022 after hitting record heights

City houses price may tail off towards the end of 2022 after hitting record heights, says a property expert.

Monday, 23rd May 2022, 11:11 am

Over the past year, the average price of a property in Sheffield has risen from £189,338 to £202,639 according to the UK House Price Index – a 6.6 per cent increase year on year.

But experts say the effects of inflation, potential interest rate rises by the Bank of England and the continued cost of living crisis will eventually curtail the market.

The Property Buying Company, owned and managed by property professionals, has released new housing market statistics about Sheffield including expert prediction for the housing market over the next 12 months.

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City houses prices may tail off towards end of 2022 after hitting record heights.

Chief executive officer Jonathan Christie said: “Sheffield as the second largest city in the Yorkshire and Humber region has become a property hotspot in recent years having seen substantial investment and redevelopment.

“Over the past year – April 2021 to April 2022 - the average price of a property in Sheffield has risen from £189,338 to £202,639 according to the UK House Price Index which represents a 6.6 per cent increase year on year.

“I expect that house price growth may tail off and plateau towards the back end of 2022. The cumulative effects of inflation, potential interest rate rises by the Bank of England and the continued cost of living crisis will eventually curtail the bull market we have seen over the past 18–24 months.”

The Property Buying Company found the following:

55 per cent increase in Sheffield people enquiring to sell their homes fast from 2021-2022 33 per cent of cash buy sales are looking to buy on elsewhere 17 per cent are selling a buy to let 19 per cent are looking to release cash from their sale

These figures came after the latest Rightmove analysis showed the average price of property coming to market hitting a new record for the fourth consecutive month, rising to £367,501.

This month’s increase of 2.1 per cent (+£7,400) is the highest at this time of year since May 2014, and marks a national jump of £55,551 in asking prices in the two years since the housing market shut due to the pandemic. This compares to a rise of just £6,218 in asking prices in the two years before the pandemic, and illustrates how the frenzied market activity has led to two-year price growth in cash terms never before witnessed in over twenty years of tracking prices.

This fourth consecutive price record comes alongside a fourth successive interest rate rise, but this rate rise and other household economic concerns do not appear to have dented the motivation and urgency to move that are felt by many, though there are signs that the market is starting to ease.

The number of buyers contacting estate agents is 14 per cent down on the stamp-duty-fuelled market of this time last year, but is up by 31 per cent on the more comparable market of 2019. The number of properties available to buy is 55 per cent down on the levels seen in 2019, meaning that supply and demand look likely to remain out of kilter for at least the rest of the year.

The number of sales agreed is up by 12 per cent in the year to date compared to 2019 even with restricted choice though is down 17 per cent compared to the exceptional market of the same period last year.