Last year, house prices dipped at their fastest level since 2008, whilst the cost of borrowing spiralled. Many are hoping that 2023 will bring more stability to a volatile property market. So what have the experts predicted for 2023?
Ageing population
The 2021 census confirmed there were over 11 million people, accounting for 18.6% of the total population, who were aged 65 years or older. With an ageing UK population, this will lead to an increased demand for retirement homes and investment in the sector. Experts predict that there will be an increase in the number of retirement homes available on the property market.
Co-Living Accommodation
As the cost of living continues to rise and disposable incomes are under pressure, there will be an increase in demand for co-living accommodation. In recent years this has become a popular choice, and 2023 will see more people choosing to live in shared accommodation to keep costs down. Competition will be fierce, so it may be advisable to go with a no sale no fee conveyancing service when you find your property.
Second Homes
During the pandemic, we collectively experienced different ways of working. Many staff are still working from home or have hybrid work arrangements. With an increase in flexible working and re-evaluation of life priorities, there has been an increased demand for second homes, with more people investing in property in rural locations. Competition for second homes will increase. Being in a position to make an offer quickly will be important, and choosing a no sale no fee conveyancing service such as that seen here: https://www.samconveyancing.co.uk/news/conveyancing/no-sale-no-fee-conveyancing-153 will avoid any unnecessary costs if the purchase falls through.
Property Investors
As the market becomes increasingly favourable for buyers, property investors are on the lookout for development opportunities, particularly as demand for affordable housing far outstrips the supply. Unfortunately, as the cost of living increases and with many people struggling, affordable housing will be needed more than ever. A number of social housing properties, in addition to an increasing percentage of cheaper private rental properties will be snapped up in 2023.
Bad news for first time buyers
Unfortunately, first time buyers will not have an easy ride in 2023. The cost of living means that many who are trying to get onto the property ladder will be competing with others who already have sizable deposits readily available, making the first time buyers market highly competitive. The average age of the first time buyer is likely to increase, predicted to be at around the 30 to 35 mark.
Lenders will diversify
As the property market picks up, lenders are more likely to offer more competitive rates on mortgages. The lending market will be tough, however. Back in 2008, lenders who diversified seemed best set to survive, and this is likely to be the case in 2023.
Although 2023 is likely to offer more stability in the housing market and bring in much-needed investment, competition will be tough for buyers.