UK Property Market: Look Back and 2023 Forecast


However, the pace of property price growth began to slow slightly from August onwards and, by November, prices were considerably steadier than previous months. Meanwhile, the cost-of-living crisis resulted in more caution in the UK property market. At the same time, new Chancellor Jeremy Hunt announced in November that stamp duty cuts in the mini budget would remain in place until 31st of March 2025, having recently increased the threshold from £125,000 to £250,000. This has helped to stimulate the homebuyer market as people look to take advantage of lower taxes and will continue to help maintain a high level of demand throughout 2023.

By the last quarter of the 2022, all regions had recorded slightly lower annual price growth, but still comparatively higher than the same period in 2021. December saw price growth steady to 2.8%, down from 4.4% from November, and this coincided with the Bank of England raising the base rate to 3.5%, in response to rising inflation levels. Because of this, mortgage offers dwindled momentarily, but quickly began to recover in the first quarter of 2023 as buyer demand remained high and uncertainty in the market eased.

UK Property market forecast for 2023

After several consecutive month-on-month record price increases, the property market began to steady throughout the last quarter of 2022, with many industry experts predicting this to continue well into 2023 and into 2024.

Whilst we saw a slight reduction in mortgage availability as a snap response to September’s mini-budget and resulting economic turbulence. We are now seeing mortgage rates beginning to fall again and an increase in mortgage products coming back onto the market. As such we expect demand for UK property to remain consistent over the coming year.

November’s Autumn Statement and the extension to stamp duty cuts adds a huge incentive for people to get onto the property ladder or move up the ladder sooner, stimulating the UK property market and demand.

Industry expert predictions understandably vary, but Savills forecast, Knight Frank and Zoopla all anticipate property price growth to remain steady in 2023 ahead of a boost in 2024 as wider economic factors, such as interest rates, stabilise and mortgage offers continue to recover.

Overall, UK property market forecasts continue to look bright, with property price growth set to steady and buyer demand remaining strong despite external economic factors.

With mortgage rates beginning to fall and more mortgage offers coming back onto the table, schemes to help homebuyers get onto the property ladder and sustained homebuyer confidence; there is still plenty of opportunity for first-time buyers and home movers to buy property and reap the financial rewards in the years to come.

Similarly, with rental demand and prices following the same upward trajectory throughout 2022, property investors are presented with a prime opportunity to yield a healthy return on their investment. With rental demand reaching unprecedented levels due to a shortage of housing stock, 2023 is a great time to invest in buy-to-let property. In fact, according to a new survey, around 50.45% of investors are still looking to invest in property in the coming months due to the favourable rental market.

If you’re looking to expand your property portfolio, discover our best places to invest for 2023, here.