Over the past year, the UK housing market has certainly seen some big changes – from the cut in stamp duty, the high demand for rental properties and of course, the marked change in interest rates.
Here at Clarendons we have had one of our busiest – yet unpredictable - years in our 11 year history in both lettings and sales. As we move in 2023 our team have taken out their own crystal balls to look at the trends we expect to see…
Mortgage rates should stabilize
“After a decade of very cheap borrowing, the mortgage market hit a chaotic spell around October and November due to rising inflation and Government budgets with interest rates rising dramatically. Rates have now settled down and are stable. Unfortunately, gone are the days of the past few years where you could borrow money for as low as 1% interest.
The good news for 2023 is that rates should stay stable at around 4% to 5% dependent on the term and mortgage product, which should prove affordable for most if they are realistic with their borrowing. To offset higher lending costs, it is likely expected that prices will fall in the coming year, which should enable buyers to continue buying!
Alex Clarkson-Tooze, Managing Director
Rental demand to continue
“I see a positive landlord trend moving into 2023. With a shortfall of available rental properties throughout 2022, this looks set to continue moving through 2023 and beyond, with tenant demand soaring and leading to higher rents. Great news for landlords and investors alike with higher returns on your investments for the foreseeable future and with this breeding confidence to expand property portfolios.”
Leigh Peters, Senior Property Negotiator
Buy-to-lets could be more affordable
“Given the anticipated decline in property prices, 2023 could be a perfect year to pick up a BTL deal if you're trying to add to your property portfolio.
Furthermore, the rental market appears to be in excellent shape for the upcoming year due to exceptionally high demand and relatively low supply.
The predicted decline of property prices could result in a great return on your investment, as the rental market is expected to remain robust. High rents and a low purchasing price equals a great return on investment. “
George Murphy, Property Negotiator
Be competitive when selling in 2023
“With energy prices, inflation and mortgage rates all on the rise and numerous articles predicting a price drop in 2023, it’s understandable that many home owners believe now is not a good time to sell. But that is not necessarily the case! While house prices have dropped slightly in the last couple of months there is still a shortage of properties and there is still persistent buyer demand. The key to selling in the current market is to be competitive. Ambitiously priced houses are starting to stall so if you are serious about selling, the best advice is to be realistic with your asking price and this could even result in interested parties bidding against each other. “
Jordan Ivings, Client Manager
Keep ahead of the legislation
“In 2022, the Government published its “fairer private rented sector white paper”, which is said to be “The Biggest Shake up of the Private Rented Section in 30 Years”.
With all the impending legislation changes potentially coming into place in the new year, it can be hard to keep up, but it’s something all landlords must be aware of.
Rest assured that all members of staff at Clarendons will continue to keep up to date with all updates and continue with their training to offer the best service in 2023 to all their landlords and tenants.”
Emily Cobby, Senior Property Manager
If you’re looking for property advice for both sales and rentals, or you’re looking for a free property valuation in Redhill, Reigate or other areas in Sussex and Surrey, then please do get in touch with the team today.
