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What does 2023 hold for the property market-a boom or a bane

2022 was a rough year, be it in terms of the pandemic, excruciating temperatures, or the haywire property market. Starting from the unfavourable consequences of the mini-budget to the unpredictable rents in the rental market, the property market in the United Kingdom witnessed a lot. But with a new year comes new hopes and new opportunities; 2023 might prove to be the salvation of the property market of the UK. Property investment is frequently a thought for those wishing to invest their money at the beginning of the new year. 

Thinking of buying a property or selling it in 2023? This article will help you make decisions as it presents the predictions for the property market in 2023.

Dropping house prices with a future anticipated growth

Despite the continued high demand for housing, the UK’s cost of living problem and the rapid increase in housing costs have combined to make dwelling unaffordable for many people at the current pace of inflation. Therefore, it seems unlikely that the fast expansion in housing prices we saw in 2022 will continue in 2023.

In December 2022, real estate prices fell for the fourth consecutive month, and this trend seems to make its way into 2023. In fact, JLL (Jones Lang LaSalle Incorporated) forecasted a 6% decline due to rising borrowing rates and declining demand.

According to a recent Savills projection, house prices will increase by 6.2% by 2027. 2023 offers investors a fantastic opportunity to purchase UK real estate while prices are still low but expected to rise in the late future.

The new standard for mortgage rates

Mortgage rates are already falling from their October peak levels in 2023 as the political and economic situation in the UK has become considerably more stable. Interest rates have remained low since the 2008 recession, and many people thought this was the norm.

Nevertheless, it is improbable that these lower rates will return. The number of mortgages with high loan-to-income ratios taken out under this supposition suggests that fewer people will do so in 2023. According to most predictions, we may begin to adjust to slightly higher rates once more in 2023, which calls for a peak of 4.5–4.75%.

Rising rental prices

Many prospective buyers will continue to rent in the face of tighter affordability checks, especially first-time buyers. This will maintain a high rental demand. With the existing limited supply that we’ve already mentioned, you may anticipate more increases in yields and rental rates this year.

According to data from the Hamptons, rental prices may rise by 5% in 2023 and 4% in 2024, falling just short of the 6% average we witnessed in 2022.

North-West: The Property Hotspot

The North-West ranked among the top regions to invest in real estate in 2022 for several reasons. Major cities like Liverpool and Manchester offered some of the UK’s top colleges, excellent rental yields, and reasonably priced real estate to the expanding young population. Click here to view manchester city guide.

The outlook for the Manchester and Liverpool real estate markets in 2023 is quite optimistic. According to Savills, the North-West is expected to experience the fastest growth (11.7%) in the UK over the next five years.

For the near future, the North-West will remain one of the finest regions for investing in UK real estate, which is wonderful news for both new and experienced investors. Those who have already made the switch can rest easy knowing that their investment portfolios are secure.

An opportunity for foreign buyers

Due to the political unrest in the autumn of 2022, the British pound fell to historic lows. The value of the pound relative to the dollar reached its lowest point in September since 1985.

Foreign investors buying property in the UK have profited from this turn of events, and it seems like 2023 will continue to bring them more such opportunities, as the pound’s value is likely to remain low this year too.


It is anticipated that the market, at long last, will finally experience some calmness. There won’t be a boom, and there won’t be a bane either, but there will be more stability, clarity, and a potential for a decent, long-term price increase.

2023 will be the year to make sensible investments for long-term gains because prices won’t be increasing any longer.

Marco Polo
Marco Polo
Marco Polo is the admin of He is dedicated to provide informative news about all kind of business, finance, technology, digital marketing, real estate etc.

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