The UK property market and its fluctuating property prices are awaited to get stable in 2023 after the foregoing months saw a good growth record. Industry experts forecast, that the Market will continue its growth trajectory, bringing good tidings to buyers who are planning to invest this year. If you have an interest in property our professional estate agents in St. Neots will guide you throughout the entire process with an excellent customer experience.
Owing to the stamp duty cuts and numerous government support schemes, the demand for property is predicted to stay strong during this time. As we take a more focused look into what are the upcoming emerging trends in the buyers’ market which are likely to influence the property market in 2023.
The house prices encompassing individual cities differ significantly, and the overall data portrays a post-pandemic change in buyers’ choices. A preceding couple of years witnessed buyers, many of them working from home due to COVID, demanding more spacious properties, henceforth, driving up the prices in suburban and rural areas.
Let us look at some key factors that determine house prices
Growth of wages and the unemployment rate play a defining factor of buyer’s confidence which further influences peoples’ ease in moving and the amount they are willing to spend.
Rate of interest
The base interest rate is set out by the Bank of England, if this base price is low, it becomes easier to borrow, and consumers can then spend more on the property, in turn propelling the house prices upwards. Contrariwise, when the prices start going up the mortgages become pricier and there is a downturn in house rates, as lesser people choose to move.
Demand & Supply
The house prices of a place will always be driven by the merit of its location and the number of similar properties available in that area. For instance, a newly built housing development will bring down the house prices of that locality, as there is more competition to get buyers, similarly, a high-in-demand area with limited houses will witness quite exorbitant prices for properties there.
Property Market Predictions for home prices:
Leading Mortgage lender Halifax predicts a decrease in house prices in 2023 of 8%
Savills UK forecasts that house prices will drop by 10% tentatively.
Jones Lang LaSalle predicts a 6% drop in house rates next year
Nationwide believes house prices will fall by 5% in 2023
Property Trends 2023
The impact of COVID was tremendous, on what buyers searched for when purchasing a property
There was a “Race for Space”, as an emerging property trend in 2020, where buyers preferred the outskirts of cities and coastal areas with more green spaces and bigger properties.
Although when life returned to being normal again with the end of lockdown, ease of international restrictions, and people returning to offices for work, was when city centre flats observed a resurgence in demand, particularly with growth and preference for a hybrid model of working which saw buyers wanting prompt and accessible amenities and the workplace. Interestingly, data from Rightmove divulged that the requirement for flats on sale took over all the interest in terraced houses since the beginning of the year 2022.
Another major property trend that has influenced the surge in demand for apartments is the energy compliance of a property.
A survey by Knight Frank disclosed that 86% of responders assessed that energy-efficient compliance of property was quite important. EPC ratings of a house also played a critical role in the purchase of that property.
If the cost-of-living crunch recommences in putting pressure on the residential estate market, requirements for the more energy-efficient property will be a dominant factor and will most likely be a major emerging property trend as homebuyers look to cut short their energy bills.
New Build Properties
A noteworthy property trend that has been emerging for 2023 is a growth in buyers choosing to purchase new build properties in place of period ones.
The ever-increasing living costs and energy bills put a constraint on household’s expendable income and householders are constantly on the lookout for ways to limit their monthly outgoings; this drift is expected to grow and sway the UK property market all over 2023 and beyond as investors realise the possibilities and benefits of energy savings offered in new build properties in comparison to older homes.
The UK government’s goal for all properties is to have a minimum of a grade C EPC rating by 2035.