After a hectic early few months last year, the 2022 property market finished with a whimper rather than a bang. With UK interest rates already on the up as a consequence of the strained global economic and geopolitical picture creating galloping inflation, the disastrous mini budget at the end of September resulted in a steep rise in mortgage rates during the autumn. This led to a drop off in activity levels by the end of the year and a flattening of, and even a small dip in house prices.
Coming into the new year there has been much talk about what’s going to happen to the housing sector in 2023 and especially to property prices. Our thoughts are that it will probably be a muted start before things pick up again in the spring. After years of feast or famine, we are hopeful that the market will settle down as the next few months progress with steadier, calmer trading conditions ahead. Although house prices might come back a little, we don’t envisage a steep drop over the coming year as they are likely to be supported by the demand for homes continuing to outstrip supply.