What will the Housing Market look like for buyers in 2023?

Posted: 26 January 2023

2022 was a turbulent year for the property market, with house prices rising then falling, interest rates sky-rocketing and rental prices continuing to increase. Despite this post-pandemic chaos, the housing market is now beginning to slow down with the annual rate of house price growth slowing to 4.7%, down from 8.2% in October, the biggest drop since the beginning of the financial crash in October 2008.

What is causing house prices to fall?

House prices are falling due to the cost-of-living crisis and rising mortgage rates. Rising rates make it more expensive to borrow money, meaning fewer buyers can afford mortgages. Following the controversial September mini-budget, the Bank of England has warned it will not hesitate to increase rates further to rein in high inflation.

Should I buy a house now or wait?

Many people, especially first-time buyers, will be hoping for house prices to fall further to make it more affordable to buy. However, with interest rates said to continue to rise, this could likely cancel out any savings on any money saved on the lower purchase price. Also, now we face a lengthy recession, the number of sellers could drop too. Whether it is a good idea to buy or hold back will depend on your personal circumstances, so you will need to weigh up the pros and cons carefully.

What time of year is the best time to buy a house – and the worst?

Whilst there is no definite ‘good’ or ‘bad’ time to move house, spring is usually a better time to buy a house because there are more homes on the market. People are often keen to complete before everyone heads off on summer holidays, leaving August particularly quiet. Listings usually pick up again during September and October before dropping at the end of the year due to Christmas.

Consult with a professional for your local market

Predictions for the 2023 housing market are just that, and while analysts tend to focus more on national trends, local estate agents and other professionals have their finger on the pulse.

If you would like further information on our conveyancing services we offer, please call 01245 493959, email or complete our online form