It’s no secret that the UK property market experienced a turbulent 2022, one of the main reasons was the cost of living crisis. This resulted in seeing an increase in interest rates which has put off a large majority of potential buyers or renters. However, as we’ve entered 2023, there are still plenty of reasons to stay optimistic and enthusiastic when it comes to the Real Estate industry.
By Ben Spowart
Throughout this document, Property Webmasters will run through some ways that your Estate Agency can stand out in the UK property market in 2023. We will outline what is expected to happen when it comes to pricing in 2023, as well as highlight what the experts are saying about the current UK property market.
During 2022, the average UK house price was increasing month by month. In October, prices had increased by 12.6% in certain areas. As mentioned earlier, this was due to a mixture of things, ranging from the cost of living crisis to the demand and supply for homes.
In September 2022, house price growth was strongest in the South West where prices had increased by 17% since the start of the year. At this time, the lowest annual growth was in London, where they had seen an increase of 8.3%.
The fact that 46% more people started their selling journey on Boxing Day 2022 than in 2021, provides optimism as we look to 2023 for a general increase in stability going forward.
The UK property market is unique in several ways. One is the high demand for housing, particularly in urban areas, which leads to high property prices and a shortage of affordable housing.
Another is the long history and tradition of home ownership in the UK, which has led to a culture of property investment and a large and active property market. Additionally, the UK has a well-developed legal and financial system for buying and selling property, which makes it a stable and transparent market.
It’s important when you are promoting your properties, you include plenty of key selling messages. As we know, the UK has some wonderful sites and breathtaking architecture, which can be used to your advantage.
Rise of co-living spaces: With the growing trend towards minimalism and shared living spaces, we may see an increase in the popularity of co-living spaces, where people can live in smaller units while sharing common spaces.
This is something that is increasing in popularity and almost, necessity. The cost of living crisis within the UK has forced the hand of certain people in areas of the UK where the average price of a property is pushing higher and higher.
However, in the latest news for 2023, Lloyds Bank CEO, Charlie Nunn believes that UK house prices will fall by up to 10% this year, as higher mortgage rates and the broader cost of living crisis curtail home buying.
A delay in new build property: With talk of a ‘housing crisis’ it is interesting and worrying to hear of the thousands of new homes are at risk after a series of local authorities cut or delayed their housebuilding plans after ministers decided to drop mandatory building targets.
Chris Hodgkinson, Managing Director of House Buyer Bureau stated that the rise of interest rates has put a huge amount of pressure on household budgets. He stated that anyone who is entering the market to sell their property will still be able to find a buyer, this is due to the shortage of stock currently available in the UK.
Nine local authorities in England have paused or scaled back their plans after it was announced in December that the government would no longer pursue a mandatory target of 300,000 new homes a year.
They join nearly 30 other authorities that made similar decisions while they waited for Westminster to make a decision on its targets, with analysts now warning the confusion over housing policy could cost 100,000 new homes over a five-year period.
The UK House Price Index (HPI) uses house sales data from HM Land Registry, Registers of Scotland, and Land and Property Services Northern Ireland and is calculated by the Office for National Statistics.
The index applies a statistical method, called a hedonic regression model, to the various sources of data on property price and attributes to produce estimates of the change in house prices each period.
As of November 2022, the average house price in the UK is £294,910, and the index stands at 154.67. Property prices have fallen by 0.3% compared to the previous month and risen by 10.3% compared to the previous year.
What will we see in future months? Based on history, the current prices are at a current rate which is excessive, rising higher than the average wage. However, post-pandemic has seen a fall from the heights we were seeing in 2020.
With inflation rising, and the ability to borrow cheaply, higher mortgage rates have made it more expensive to purchase a property.
Based on the government website, we can see the difference change in prices from 2021 to 2022, see below!
We understand that in 2023, Estate Agents will find it increasingly difficult to generate leads and sales compared to previous years however there are still plenty of opportunities you can capitalise on.
Let’s start by looking at Digital Marketing. Does your Estate Agency focus on Digital Marketing? Have you seen success in this area in the past? Have you got some fresh and exciting ideas for 2023? Digital Marketing is the best way to promote these. You can capture the audience’s attention on social media by using high-quality imagery and video content. If the properties you are prompting have breathtaking views, then showcase this to your potential customers. These can be classed as USPs (Unique Selling Points) and will help give your Estate Agency the edge over other competitors.
There are plenty of Estate and Letting Agent conference’s across the UK, these events can be useful when it comes to learning the latest trends within the property industry and can increase your brand awareness by networking with other businesses and customers. The goal of the conference is for delegates across the United Kingdom to attend, taking an insight into what is currently affecting their business and the property market, as well as addressing what can power it forward.
Property Webmasters understand that as we’ve headed into the new year, Estate Agencies might be worried about attracting leads and generating sales, which is why we are here to help!
Our passionate and dedicated team is here to ensure great results are achieved for our clients. Contact us today!
By Ben Spowart
By Ben Spowart
By James Sheldon