Where will the Housing Market be by 2023?

new build home fronts

It is quite easy to predict the past and the present, though the future is a tad more difficult. The current climate and that of the last two years we have all been at the mercy of fast changing regulations on how, who with and where we can live our lives such as via government lockdowns as well as travel restrictions. We have also seen great changes to how many of us work with the going to the office each day being a thing of the past for many.

What though has remained relatively constant and without hinder is the growth of house prices and the demands put upon the sector. With rentals and new valuations at constant lows the upward movement of housing costs has continued unabated. Forecasts from many leading property professionals to include journalists via MSN channels states that house prices are likely to continue to grow though at a slower pace to what has been seen during 2020 and 2021.

Compared to May last year, you’d need around £10,000 more to buy a flat, but an additional £50,000 for a detached home.‘ source thisismoney

From January 2020 to May 2022 house prices have seen an increase from £231,940 to £289,099.

As with most things in life, prices increase upon demand and this very much is the way of property prices (sales / rentals). The buoyant job market which sees unemployment at a near 50 year low will also favour house price increases. The increase of inflation and the initiation of interest rate hikes will usually hinder any positive growth in house prices though things seem to be holding out well as of June 2022. The general feeling is that the economy remains strong with much optimism with only a handful of finance experts fearing a backlash soon from weight of costs following the covid pandemic.

Where will property prices be in six months time? It is predicted that house prices will be higher on average with a continued month on month increase even if this percentage of increase falls it will not see a negative growth. Immigration to the UK is also a big positive for house prices due to the further demand it puts on finding accommodation, there were 1,311,731 visas granted in 2021 of which 239,987 work-related visas granted. With the current situation in the Ukraine Boris Johnson said the British scheme will allow around 200,000 Ukrainians to enter the UK with an extended period offering of three years.

New builds across the UK still fail to meet targets and especially looking at affordable housing. Costs of materials continue to rise and this once again puts added costs on housing thus effecting the final valuation price of each. Rhys Schofield, managing director at Peak Mortgages and Protection said: “These figures (new build housing) tell you all you need to know about why house prices continue to rise. Demand is outstripping supply and will continue to do so when there are extreme shortages of materials and every proposed new development has to smash down a wall of NIMBYism to even get off the ground in the first place.” source mortgagesolutions

Another point to consider is due to covid and lockdowns many people have opted to work from home with many continuing to do so. This puts a greater importance on the word ‘home’ with many looking to increase their spending so to improve their day to day lifestyle qualities, no longer are we out all day working, we are at home working.

Positives for UK House Prices:

  • Demand
  • Under achieving new build quotas
  • Continued immigration (including refugee)
  • Working from home due to covid
  • Low unemployment figures
  • Rising building material costs and lack of availability / waiting lists on some products

Negatives for UK House Prices:

  • Inflation
  • Interest rate hikes

Christopher Walkey

Founder of Estate Agent Networking. Internationally invited speaker on how to build online target audiences using Social Media. Writes about UK property prices, housing, politics and affordable homes.

You May Also Enjoy

Breaking News

Homeowners in England and Wales overvalue their properties by an average of 16%

Homeowners in England and Wales are overestimating the value of their property by an average of 16%, according to new figures. Data from Quick Move Now compares homeowner estimates with formal estate agent valuations and is broken down by both region and property type. Overall, homeowners overvalue in every single category.   Regional breakdown Region…
Read More
Visual blemishes on Roads due to service upgrades
Estate Agent Talk

Emergency Sidewalk Repairs: When to Act and Who to Call

Sidewalks are the unsung heroes of city infrastructure—quietly assisting tens of millions of footsteps every day. But when they crack, disintegrate, or shift all of sudden, they might quickly turn out to be volatile liabilities. In a town like New York, in which pedestrian site visitors are constant and belongings proprietors are legally chargeable for…
Read More
Breaking News

Reapit report reveals agents’ long-term market confidence amid legislative challenges

Despite the significant challenges posed by a shifting economic landscape and the largest wave of housing legislation in decades, estate and letting agents remain steadfast in their confidence about their long-term future in the industry. According to the first Reapit Property Outlook Report 2025, covering the full breadth of sales and lettings agency opinion countrywide,…
Read More
Breaking News

Owner-Occupiers Drive Resilient Commercial Property Market

Buying Becomes 37% Cheaper Than Renting The latest Commercial Property Demand Index from specialist property finance expert, Rangewell, reveals that while investor appetite across the sector held steady in Q2, strong levels of owner-occupied commercial mortgage activity are helping drive market performance, as business owners increasingly move from renting to buying their long-term premises for…
Read More
Breaking News

One year of Labour: Property market performance review

Investors left waiting for planning reform and incentives but majority plan to increase real estate allocation   Biggest failures: Lack of incentives for developers and investors, and ineffective planning reform Top priorities: Planning reform, tax incentives, and attracting international capital Where opportunities lie: Data centres, warehousing & logistics, and later-life housing Real estate debt is…
Read More
Estate Agent Talk

Plumbing Red Flags Every Homebuyer Should Watch Out For

Buying a home is one of the most significant investments a person can make. While factors like location, square footage, and curb appeal often steal the spotlight, what’s hidden behind the walls is just as important—especially the plumbing. Overlooking plumbing issues during the home-buying process can lead to costly surprises down the road. That’s why…
Read More