The UK property market is one of the most robust and sought-after investments in the world. Unlike most countries, UK inhabitants compete on a global level, especially in major cities such as London or Manchester. This is largely due to its stability during uncertain economic times caused by a high level of bureaucracy and policies. As a Chartered Surveyors, we like to think we play a role in the UK property market’s stability as we ensure homes are habitable and structurally safe. This means when you purchase a property in the UK, you can be confident it’s not going to fall down!
It’s difficult to predict exactly what will happen to house prices in the UK in 2023, as there are a range of factors that can influence the housing market. However, here are a few potential scenarios that could affect house prices in the coming years:
Continued economic uncertainty
The COVID-19 pandemic, energy market and war in Ukraine has had a significant impact on the global economy, and it’s possible that this uncertainty could continue to affect the UK housing market in the coming years. This could potentially lead to slower house price growth or even a decline in prices, depending on the severity of the economic downturn.
Changes in government policies
Government policies, such as the stamp duty holiday, can have a significant impact on the housing market. If there are any changes to these policies in 2023, it could potentially affect house prices.
Interest rate changes
Interest rates play a role in the housing market by influencing the cost of borrowing for mortgages. If interest rates rise, it could potentially lead to a decrease in demand for housing, which could in turn affect house prices.
Supply and demand
The balance between supply and demand is a key factor in the housing market. If demand for housing outstrips supply, it can lead to an increase in house prices. Conversely, if there is a surplus of housing, it could potentially lead to a decline in prices.
Changes in the population, such as an aging population or an increase in the number of households, can also influence the housing market. If there is an increase in demand for housing, it could potentially lead to an increase in house prices.
Overall, it’s difficult to predict exactly what will happen to house prices in 2023, as there are so many variables at play. However, by keeping an eye on economic and demographic trends, as well as government policies and interest rates, you can get a sense of what might happen in the coming years and make informed decisions about buying or selling a property.