2022 was a very mixed year for the UK property market. At the start of the year, we saw unprecedented demand for homes, and fierce competition for available properties continued to create exponential house price growth. However, a turbulent political arena and an increasingly challenging economy in the second half of the year soon took their toll. By the end of the year the market was subdued, with prices and buyer confidence dropping.
So, what does 2023 have in store for the property market? These are our big 5 predictions for the coming year.
- Prices will continue to fall for the next few months, but will stabilise towards the end of the year
House prices fell by 2.4% in November, and a further 1.5% in December. We’re expecting prices to continue to dip for the first half of the year - as market confidence remains low and prospective buyers contend with reduced lending affordability - but anticipate that by the summer the market will have found a new balance and things will stabilise, albeit at lower prices and a lower volume of sales.
- Properties will take longer to sell
Higher mortgage rates and falling property prices mean we’re already seeing a reduction in the number of people looking to move. With fewer prospective buyers, properties are sitting on the market for longer. We’re likely to see fewer homes changing hands this year, with both buyers and sellers exercising caution.
- Sales will be harder won
With fewer buyers on the market, sellers and home builders will need to work harder for their sales. New build incentives will be key to enticing prospective buyers back to the market.
- Landlords will be more tempted by new build homes
Landlords are facing increasingly challenging market conditions. New build properties will become a more attractive option for buy-to-let investors this year, as they look to reduce their costs and seek properties with greater energy efficiency.
- Material costs will continue to rise – impacting home improvers and home builders
The ongoing conflict between Russia and Ukraine, alongside Britain’s continuing economic woes, will mean building materials will see further price rises. This could benefit the new homes industry, as fewer buyers are willing to take on ‘project’ properties, but it will have an impact on the bottom line as costs rise.
Scott Squire, Property PX Group’s National Client Director, said: “As we enter a more challenging market, you will need to ensure you have the right incentives to compete with your competitors and continue to fill your sales pipeline.
Property PX Group can complete the sale of a property in as little as 7 days. So even if your buyer experiences a chain break at the last minute, Property PX Group can step in to buy and save your sale
We work with developers of all sizes and can either offer a complete outsourced part exchange service or support an existing in-house offering."
If you’d like to find out more about how Property PX Group could support your sales, you can call and speak to Scott or a member of the client management team on: 01793 268960 or email firstname.lastname@example.org