With house prices remaining strong over the last decade, many investors are wondering if 2023 will be a continuation of the current trend- thankfully, it seems so, with many predictions showcasing continuing strength.
Demand for affordable housing is one of the many reasons house prices have soared throughout the UK, seeing regions such as Manchester and Liverpool skyrocketing past competitors such as London.
What has previously happened?
Over a 20-year period, from 2002 to 2022, Manchester saw prices increase from a modest £48,845 to a staggering average of £210,647 across the North West. This comes from supply issues due to the pandemic, to a change of mindsets in the younger professionals populating these towns. However, the important aspect to realise is that throughout the stated 20-year period, there have been many economic downturns, from market crashes, recessions, and pandemics, and yet, the prices have still significantly increased.
For many investors, these price increases have led them to be priced out of the current markets in major cities. Already, this issue was seen in the South, where over 20-years, the city’s prices increased 200.04%. But this trend can be seen elsewhere also. As of late, regions such as Liverpool have seen equally as defining increases of 233.94%. And when combined with regeneration initiatives within the region, these prices are predicted to continue increasing in the following years.
What is expected in 2023?
It’s hard to know what exactly will happen to house prices over the coming year, as many factors can contribute to increases or slow growth. However, as of now, many are predicting it to be the same. For example, Savills, predicts a drop of 1%, essentially negating any rumours that there may be a decrease in the market. A movement so little will not significantly impact investor decisions in any way.
What is expected however, is that with this 1% decrease, the property market will see stability. Over the next year, prices are expected to stay the same, but this isn’t a negative. In fact, this is a positive sign for investors. Over the last couple of years, many have been priced out due to significant increases, but next year, and now for that matter, is the perfect time to invest in a region that will see growth in the future.
Overall, investing in property is and still will be a stable investment with the potential for significant capital gain. As always, it is recommended to take due diligence seriously, and research areas such as Liverpool, Salford and any others that may see growth once this period of stability changes back to increases.