David Hannah, group chairman of Cornerstone Tax, has states that predictions of a property crash are way off the mark, with “buyers still interested”. Hannah expects that growth of between 5% and 8%.
The beliefs behind the housing market will remain buoyant in 2023 stems from the ongoing supply and demand imbalance. Those looking to purchase properties are outnumbering the availability of stock.
Hannah said: “We have faced a massive set of instabilities. We’ve had two years of the pandemic, necessary pandemic spending, we’ve had the war in Ukraine, and that has increased inflation, which has led to a massive increase in interest rates.
“The popular narrative has been that there will be a crash of even 10% or 20%, but I believe the facts suggest otherwise. The chronic issue of supply and demand still exists in the market, meaning that even if the number of buyers falls slightly, there still aren’t enough properties out there for those that are looking.
“Not only that, but after the value of sterling plummeted towards the end last year, the UK market became much more attractive for foreign investors and this is still the case. That means that even if domestic demand wanes, the market will be kept buoyant by interest in the market from abroad.”
Hannah continues and states that the UK property market “has tended to be more stable than any other global market in property”.
These predictions follow the growth of UK property value in 2022.
Up to 92% of homeowners saw their homes increase in value according to research from a popular property search portal.
On average, the capital gain for 27 million homes was £19,000. In fact, nearly three million increased in value by more than £50,000.
At the beginning of 2022, the total value of UK housing reached the £10 trillion mark and then increased to £10.5 trillion by the end of the year.
Overall, 2023 looks positive for the UK property market.