Data from Halifax suggests that property prices could fall by as much as 8% in 2023, according to Tom Brown, managing director of real estate at Ingenious.
Brown said: “Recent economic announcements and developments are beginning to be reflected in data. We are seeing a slowdown in the market and the number of mortgages approved for house purchase falling as well as a decline in new buyer enquiries. There are a number of factors at play here including the escalating cost of living crises, but there will certainly be some very unwelcome additional mortgage costs for owner occupiers and investors throughout 2023 and beyond.
“Nationally there continues to be a significant shortage of housing stock across many locations and markets. And as such, we would expect any related weaker demand from owner occupiers to be balanced by higher demand from renters.
“Whilst interest rates and inflation present an ongoing threat to the wider economy, we see UK residential property markets remaining robust, resilient and performing well. The picture is not uniform across the country and all price points, however, requiring expertise to interpret the headline numbers.”