The property market has shown resilience this year, but what is next?
With inflation having eased, but still not quite at the Bank of England’s 2% mark, you may be wondering how this could affect property prices.* What exactly is in store for the housing market next year? Is it a good time to buy or invest in property?
These are topics at the forefront of many of your minds, whether you’re a landlord, a seller or a buyer. Here’s all you need to know…
But, before we look forward, let’s recap on what’s been happening in 2023.
Are house prices going up or down?
After a slight lift in average asking prices in October (+0.5%), Rightmove’s November House Price Index reported a fall of -1.7%, reaching a UK average of £362,143. None of this is unusual at this time of year, as we expect a seasonal decrease in house prices, as sellers become more competitive and eager to sell before the New Year.
When exploring Rightmove’s data on house price inflation at a more regional level, Wales experienced a monthly decrease of -1.6% and an annual increase of 0.1%. This is further supported by Halifax data showing that the average house price in Wales has decreased by 3.9% when compared to last year.† In Scotland, the most resilient region in the UK, Rightmove reports a -0.9% monthly change and a 1.9% year-on-year increase. Again, Halifax reports a similar trend, with Scotland’s average house price having decreased by only 0.2% year-on-year.† David Plumtree, Connells Group Estate Agency CEO, comments that “when looking at the smaller picture of year-on-year or month-on-month, it’s easy to see a cooling of the market and assume this is bad news, but when we zoom out and consider the data we have over a number of years, we can see what’s actually happening.”^^
Many predicted large house price falls in 2023, but even with the challenges of increased interest rates impacting buyers and sellers alike, the housing market has shown surprising resilience - especially in Scotland. First-time buyers and cash buyers have been leading the way on this and are still finding their dream homes, making up 2 in 3 sales – a trend that will be interesting to follow in the next year.† Colin Bradshaw, CEO of TwentyCI (a property data insights and analytics company) comments that “the property market’s ability to adapt and evolve is what’s keeping the wheels moving. There are some optimistic signs on the horizon, with confidence from buyers and sellers on the rise alongside increased competition in the mortgage market.”**