Our website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.
Home Investment Zoopla: Housing market braced for 5% falls in 2023 but demand grows in urban areas

Zoopla: Housing market braced for 5% falls in 2023 but demand grows in urban areas

by uma

 

  • UK house prices increased by 7.2% year on year – an increase of £17,500.
  • Quarterly growth slows rapidly, and we could see quarterly price falls in early 2023.
  • Buyer demand 50% lower than last year, new sales agreed 28% lower.
  • The pandemic fuelled flight to rural and coastal areas has slowed as demand weakens.
  • Interest in affordable, accessible urban areas such as Bradford and Crewe is rising.
  • Zoopla estimates UK house prices falling by 5% next year. Average price falls in London could be 5-8%.

Zoopla has issued its UK House Price Index under embargo for Thursday 22 December.

Helen Morrissey, senior pensions and retirement analyst at Hargreaves Lansdown:

“House price growth has been pretty robust over the whole of 2022 but this hides the horror show of the past few months with demand rapidly on the slide – we face the very real prospect of quarterly price falls in the near future.

The cost-of-living crisis is biting down hard on our finances and rising mortgage rates have put off all but the most determined of buyers. Added to this, the prospect of a looming recession is enough to make many people delay a house purchase for the foreseeable future. We’ve also seen the end of the pandemic fuelled race for space with demand in rural and coastal areas tailing off.

Committed buyers may still be able to get their dream home as there are signs many would-be sellers are willing to be a bit more flexible on asking prices, so those willing to haggle could still get themselves a good deal.

The sense of nervousness is palpable as we head into the New Year as people wait for signs of house price falls before making their move. In one bright spot among the gloom, Zoopla expects falls of around 5% next year -this is in line with recent data from Nationwide and more optimistic than some other predictions.

Affordability will be key -though rural and coastal areas are seeing demand fall, there is demand for more affordable urban areas such as Milton Keynes, Bradford and Coventry as people become increasingly office-based again so they will likely to be more resilient to price falls.

Longer term, potential price falls of between 5-8% in London, coupled with wage increases and lower mortgage rates, could slowly improve affordability and help more people bridge the gap and get on the housing ladder which could help fuel something of a rebound.”

 

Recent Post