2022 – it was a seismic year in the property market with significant political and economic earthquakes rocking the industry as well as more specific aspects coming into play, such as the new law on interlinked fire alarms for all Scottish homes that came into force on February 1st 2022.
Based on last year, it would be hard to lay any big bets on what may happen in 2023 with any confidence, but here are our thoughts on what could be key topics this year that may occupy the news space.
Rightmove forecasts that, depending on the type of property, asking prices will, on average, drop by 2% in 2023*. As this is a national average housing market activity and house price changes will vary depending on where you are selling or buying. Overall, we can expect to see a more level market with fewer peaks and troughs.
As buyers wait for prices to drop and sellers look for the closest price match to their desired sales price, Rightmove suggests that it may take buyers in England around 60 days to complete the buying process on their new home. In Scotland, this process tends to be faster.
For landlords, there are many considerations they will need to weigh up when it comes to continuing with buy-to-let and thinking about buying additional properties. On the one hand, letting a property has more challenges than ever, with the increased cost of living, rising mortgage costs and additional legislation to cope with.
However – demand from tenants for a place to rent continues to rise, fuelled in part by many first-time buyers putting plans on hold and opting to rent instead until the economic climate improves their personal circumstances. This demand is far from being met by the current supply of available rental property. Not only does this mean that letting a property is quicker than ever, but rental prices are being pushed upwards to record levels, currently averaging £1,174 across the UK and £840 across Scotland^. The chance to generate a good yield is still there for landlords, if they invest in the right properties and locations.
If you are thinking of investing in buy-to-let, why not read our Guide to Investing