Our 2022 property roundup - plus predictions for the future

All you need to know about the housing market right now... 

With inflation rising, there’s lots of talk of a recession, and this has people slightly concerned about property prices. What we do know is that average UK property prices rose by 7.8% in the 12 months to October 2022, according to data from property portal Zoopla. This represents a slight decline on the annual growth rate of 8.1% recorded the previous month. 

We take a look at the sales and rental market and look at predictions for the future. 2023 is set to be an interesting year…

The number of people enquiring about homes to rent is up 23% 

First-time buyers are some of the hardest hit by mortgage rate rises. Many first time buyers are therefore looking at the rental market as a short-term alternative. The number of smaller rental homes on the market is 4% lower than last year so choice is limited. According to a Rightmove survey, four in ten first-time buyers with plans to buy in the next few years have already got their total deposit saved. They are very likely waiting to see if mortgage rates drop before they decide to purchase a property.

What’s the latest with rental stock in the lettings market?

The lettings market is stock-strained and agents are reporting around 36 enquiries per property on average. This increases the competition between tenants and means that some high-demand rental properties are fetching higher rents than anticipated.

What’s your property now worth?

Where have house prices increased the most this year?

According to Zoopla*, properties in Nottingham saw the steepest annual increase of 10.5%, compared with house prices in London which grew by just 4.4%. Scotland’s Aberdeen was actually the only city where house prices dropped in the year to October, decreasing by 1.1%. Housing stock however has increased this year – with Zoopla stating that, in the four weeks to 20 November 2022, 40% more properties were added to Zoopla than during the same period in 2021.

What are the predictions for the property market in 2023?

According to Zoopla, some properties are already undergoing modest price reductions and the property portal does expect them to decline further in 2023 - with predicted house price falls of up to 5%. This will be most prevalent in more expensive regions of the UK such as London and the South East. If you're thinking of selling, it’s certainly worth getting an up-to-date valuation. It takes just 60-seconds…

Could your property be worth more than you think?

Richard Donnell, director of research at Zoopla, said: “We still expect price falls of up to 5% in 2023, with one million sales and mortgage rates dipping below 5%. But the number of sales going through will remain buoyant.”

Is there a tenant update?

Tenants are trying to secure viewings for properties as soon as they become available, and the stock shortage means there’s a huge number of enquiries. The number of enquiries is pushing up tenant prices which is causing slight unease amongst tenants. In fact, almost half of tenants (46.48%) are concerned that the current economic climate could impact their ability to pay rent as the crisis continues.*

Is inflation and the property predictions next year good news for landlords?

The 2023 housing market could present great opportunities for landlords and investors. The huge increase in tenant demand coming down from first time buyers who are choosing to rent teamed with the potential decrease in property prices proves positive for some landlords.

**Zoopla House Price Index Report November 2022
***Rightmove House Price November 2022 ****https://www.theguardian.com/money/2022/nov/25/demand-for-rental-homes-uk-up-23-per-cent-in-a-year-as-rents-hit-record-high

Correct time of publishing - 15/12/22

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