25 Jan 2023
Buying an offshore property may seem daunting at first, but by knowing what to look out for, you can make much more informed decisions and take confidence into your property search.
Whether you’re looking for a UK property as a second home or as an investment, staying on top of trends in the market should be a top priority, so that you fully understand the asset you’re buying and have an insight into what factors may affect this asset in the future.
Here are three key factors to look out for in the UK property market in 2023…
Before thinking about what will happen in 2023, it’s useful to look back at what happened in 2022. In the first half of the year, the UK property market remained strong as pandemic-driven changes in housing and low rates kept demand high.
As the cost of living increased and the cost of financing increased, house prices began to level out in the middle of the year and even start to fall in the final months of 2022. According to Halifax’s House Price Index, the average UK property price fell in both October and November 2022, with a drop of 2.3% in November.
If you’re thinking about buying a UK property, you may want to keep a close eye on the latest house price statistics in 2023 to help you decide whether the time is right for you to invest your money, as continued falling prices could make properties more affordable for you.
Demand for rental homes was huge in 2022. This caused UK rental prices to rise throughout 2022, as more people preferred to rent rather than buy. More competition amongst renters drove up prices, resulting in higher income for landlords.
According to Rightmove’s Rental Price Tracker, the average UK rent rose by 11% between Q3 2021 and Q3 2022, with this figure rising to 16.1% in London.
If you’re considering buying a UK property as an investment to rent out to tenants, knowing how much rent you may receive can be very helpful. Using the yearly rent and property price, you can calculate the rental yield, which is the potential returns on the property investment through rent.
Knowing this can help you decide whether buying a rental property in a certain area represents a good investment.
During 2022, the Bank of England raised its Bank Base Rate to try and reduce the impact of inflation in the UK.
As a result, it became more expensive for homebuyers to get property finance from banks or lenders as the cost of borrowing money increased.
Potential property buyers may want to monitor the rates set by the Bank of England, given the knock-on effect that these have on property finance products across the industry. Staying on top of what’s going on with rates can help you make a more informed decision on whether you can afford to buy a property in the UK.
YOUR PROPERTY MAY BE AT RISK IF YOU DO NOT KEEP UP THE PAYMENTS ON YOUR NOMO PROPERTY FINANCE.