What Opportunities Will The Property Market Bring In 2023?

Many people are saying it is all doom and gloom. But it doesn’t need to be, one of our favourite quotes from none other than Winston Churchill “The optimist sees opportunity in every difficulty” is how we should navigate through 2023.

Many landlords look set to be selling a good chunk or all their portfolio in 2023. High interest rates coupled with high energy bills, and no tax relief on rental income are mainly to blame. Nonetheless there are opportunities. There is a shortage of properties, as we all know too well, which is forcing rents to increase to crazy levels. But there are many landlords who haven’t put the rents up in years and therefore there is scope for uplifts and generate higher yields!

SpareRoom wrote an article last year about the housing crisis and said “the government needs to decide what it wants to do about the housing crisis. But they’re not acting fast and, even if they do, any changes will take time to make a difference. However, there are actually around 21 million empty spare rooms in homes in England alone. If just 2% of those homeowners rented out their spare rooms, we’d create a virtual city the size of Manchester (without laying a single brick or changing a single law). That could happen pretty quickly.” Any landlords withholding their properties should seriously consider letting out property, which we will gladly assist with.

Interest rate is set to go up again however many bankers and financial service personnel believe it will peak at 4.5% -5% which will likely see in the first half of 2023. Despite this banks need to lend money to make sure money is circulating around the economy. A few banks have already reduced their fixed terms rates to attract borrowers. More banks will most probably follow suit which will stimulate the housing market more.

The famous housing target, “building 300,000 new homes a year…” was never met after decades and decades of debate and was quietly scrapped in late 2022 by government. Sounds about right. This is why we believe 2023 is still a good year to invest in property.

The first half of this year will no doubt be challenging but in our humble opinion we believe the sales market will start to pick up towards the end of the year.

And with that we say let’s be a realistic optimist in 2023!

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