Property predictions 2023

Campions Head of Sales and Lettings Mark Beresford-Ward reveals his property market predictions for 2023, and the impact they could have on you.

2022 was a particularly challenging year for all homeowners, renters, and landlords alike, with rents and property prices rising across the UK, alongside increases in mortgage rates and utility bills. But what will 2023 bring? And will we see more stability across the housing and rental markets?

Housing market

With many media headlines forecasting house prices to fall in 2023 (with some predictions of 10 or even 15%), plus increases in interest rates, what will actually happen this year?

Many experts are actually stating any fall will be just within 5%, and only during the first half of 2023, followed by a quick levelling out of prices. So, we’re not talking about a full on ‘crash’ here.

Even so, this uncertainty has understandably unnerved many prospective home buyers, but we believe a large percentage are currently sitting tight and simply waiting to see how rates change in the upcoming months before they act. Many also held off purchases in the run up to Christmas.

We also saw the removal of a number of fixed deals in 2022, but many lenders are saying this was a temporary measure so it’s definitely worth having a chat with an experienced broker if you’re in the market for a new home as we could begin to see more deals in the future.

Rental market

We saw a huge surge in demand for rental properties throughout our entire portfolio in 2022, due to a reduction in new landlord instructions and also the selling of their stock during the ‘boom’. We’re expecting rental demand to remain high this year as many first time buyers are continuing to wait until mortgage rates drop.

There is also substantial landlord demand for one and two bedroom properties as with the right capital, they can be relatively affordable and quickly tenanted at favourable rates. Landlords will also continue to see tenants remaining longer in properties with lessened ‘void’ periods.

We’re also expecting to see an increase in the number of landlords choosing a fully managed option from their letting agent due to the increased complexity of new property legislation coming into force.

So, while 2022 was a roller coaster ride for both markets, we’re confident that they will remain stable.

If you would like to talk to one of our property experts about selling your home or renting a property, please contact us here.