How Will UK Property Look For The Year Ahead
There are already signals that the UK housing market is slowing…
…because interest rates have progressively climbed and are hampered by the ongoing cost of living problem. As a result, typical homebuyers are less likely (and less able) to purchase property.
Is this a sign that the UK market is headed for a sharp correction, as many predict, or will there be a slight slowing in the aggressive house price growth seen in recent years?
Regardless of the severity of next year, and despite broad economic pessimism, many seasoned property investors are obviously planning to enhance their portfolios in 2023.
The next 12–18 months will surely present investors with a less competitive market, and there will undoubtedly be some intriguing deals to be done. Given the fundamental imbalance of supply and demand, a reasonably mature housing market, and continuous access to credit alternatives, it’s difficult to imagine a massive crash and some type of investor feeding frenzy.
Another point to highlight is that rents are growing, and landlords who understand numbers and have the resources to put in the effort are continuing to see their investments pay off and purchase more properties.
In 2023, investors are likely to be more selective about where they invest in order to reduce void risks and get above-average returns, which are now at 4.7% in the UK.
