The entire property news industry and admittedly ourselves too, reported at the end of 2022 that the average UK house price would more than likely tank in 2023 as an increased cost of living and a subsequent reduction in the amount of people interested in purchasing property started to take affect. However, property website Rightmove have announced that the average price of a property in the UK has actually increased! Something that none of us in the property industry were expecting.
Average UK House Price Increasing
Rightmove, who regularly analyse the property market in the UK and release their findings free of charge through their website, have announced that there was actually a 0.9% rise in house prices in January 2023 compared to the previous month. What could be the cause of this? Just a fluke after the quiet Christmas period? Or a positive sign that the property market will come back stronger than we thought it would?
As mentioned by ourselves in previous articles, the last few months of 2022 (October, November, and December specifically) we saw a drop in the average UK house price of properties being sold and being listed due to a number of economic factors. Mostly because of the economic crisis that most of us find ourselves in. As purse strings get tighter and people are wanting to cut costs everywhere they can, a lot of people are reconsidering moving house and are sitting tight until the economy is in a better place. This decrease in the amount of active house hunters has had a knock on affect where the normal competition for property and bidding wars that bump sale prices up, have dwindled.
This has in-turn meant that properties are either selling for their asking price or sellers had been forced to reduce the market value of their property to encourage would be buyer’s to make an offer. But, it does seem from Rightmove’s data that this was just a temporary blip, and there is a renewed interest in purchasing again in 2023 as mortgage rates come down and the future of the UK economy has a more positive outlook.
Is It All Positive?
Rightmove’s figures show that the average asking price for a home in the UK being sold now stands at £362,438.. This is around a £3,301 increase from December 2022, however it is still £8,720 lower than it was in October 2022. As we have already mentioned, this increase in property price is positive but it may only be short lived. What do we mean by this?
Well yes, it could just be a natural increase after the quieter Christmas period, but we could still be waiting to see the real impact of the rate rises and inflationary pressures of last year. We could make a very realistic prediction that the next few months could in fact see the real affects of the economic crisis and house prices could seriously plummet nearer the middle of the year. But the only way we can find out is by sitting and waiting to see what happens unfortunately.
What Else Does Rightmove’s Research Show?
The rest of Rightmove’s report into average UK house price goes into a bit more detail about specific property enquiries from buyers and estate agent engagement. It says that the amount of potential buyers getting in contact with estate agents in January 2023 is a 4% increase on January 2019 before the pandemic, while the number of people looking to buy who are contacting estate agents was 55% higher than in December 2022. The 5th of January 2023 was also the third busiest day on record for people booking valuations for their homes.
Am I In The Right Position To Buy In 2023?
Are you considering purchasing in 2023? The only way you will know for sure if it is the right thing for you to do, is by speaking to a property and mortgage professional like Oportfolio Mortgages. Our team of experienced and knowledgeable advisors are at hand to answer any questions you have about the mortgage and property market and we are always here to help. Give us a call for free now to get the ball rolling.