- In the early weeks of the year, we saw a 4% increase in the number of prospective buyers contacting agents compared to the same period in 2019.
- The number of property buyers in June 2023 was 3% higher than it was in 2019, as right-priced homes continue to attract motivated buyers due to a shortage of properties for sale compared to historic norms.
- The housing market in the UK has demonstrated resilience during the first half of the year, with average asking prices now standing 2.6% higher than they were in January.
We have officially passed the halfway mark in 2023, which provides us with the perfect opportunity to look back and reflect on the property market so far this year. It has been an intriguing year so far for property investors, as the country has recovered well following Kwasi Kwarteng’s Autumn statement that seemed to send the country into shock.
According to Rightmove, as of the end of June 2023 the average price of property had seen a slight decline of 0.2% in the month, which is marginally below the 0% norm for this time of year. It continues the trend that the property market showed at the beginning of the year as in January, average asking prices were £8,720 lower than their peak in October 2022. Savvy property investors have taken advantage of factors like this, as we at North Property group have seen two record breaking months in terms of property sales since then, with October being one of those months.
Compare this to the early weeks of the year, which saw a 4% increase in the number of prospective buyers contacting agents compared to the same period in 2019. In the opening weeks of the year, there was a significant 55% jump in the number of buyers showing interest compared to December, representing the biggest New Year bounce since 2016.
These early signs of confidence seems to carry on throughout the year as the property market continues to stabilise following a turbulent couple of years, with the anticipation of a more stable market after the economic uncertainties of the past year being fulfilled. It was still expected then, that the number of properties for sale would still be low, as finding a prime investment opportunity is still a premium.
As shown by the Rightmove report, the number of property buyers in June 2023 was 3% higher than it was in 2019, as right-priced homes continue to attract motivated buyers due to a shortage of properties for sale compared to historic norms. Inflation has also dropped to its lowest point so far this year, sitting at 7.9%, down from 8.7% in May.
The number of available properties for sale in the UK, which is 12% lower than at this time in 2019, is further contributing to the competitive market. Despite all of these factors, the housing market in the UK has demonstrated resilience during the first half of the year, with average asking prices now standing 2.6% higher than they were in January.
The low supply of properties in addition to the rising demand of buyers and investors means the property market is continuing to thrive despite what many think is poor conditions.
Despite the easing in sales levels, there is still a lack of property choices available in the market, making reasonably priced properties in line with local market conditions, or properties that come with free parking or other amenities highly sought after. The dangers of over-pricing properties are evident, as those that require a price reduction are significantly less likely to find a buyer, especially given the current market conditions.
As for mortgage rates, the average rate for a five-year fixed, 85% Loan-To-Value mortgage now stands at 5.69%. While the rates have risen, they are still well below the levels seen in October 2022 following the mini-Budget.
At the beginning of the year, it was predicted that the market may see ups and downs in the first half of the year, but that this would stabilise and show even better signs in the second half of the year. The first half of 2023 has shown promising signs of investors, but if you still are not convinced, the second half of the year is set to bring an influx of property investors in, which may saturate the market and raise property prices as the demand for properties only increases.
As the economy continues to stabilise, the number of investors and tenants will sky-rocket as the demand for property gets higher despite what some perceive to be a ‘risky’ market. Several attractive developments under NPG are in the works in Liverpool, London, Manchester and Brighton & Hove to name a few, as our investors have a selection of some of the most exciting projects in the country. With high rental yields, a soaring tenant demand and outstanding locations for our properties, it is not an opportunity a savvy investor would want to miss out on.
In summary, the current property market may look daunting due to base rate increases, inflation concerns, and rising mortgage costs. However, buyer demand remains strong, and several new-build properties continue to attract motivated investors. There are several property investors that always look to capitalise on the market’s resilience, as these long-term investments appreciate in capital and provide attractive rental yields in the long run, regardless of inflation, base rates or other external factors.
To find out about more of North Property Group’s new-build and regeneration projects, click here.
To learn about the property investment opportunities above, or to find out more about how property investment works, get in touch with the experts at North Property Group today.
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