The UK property market is tilting in favour of buyers rapidly, forcing leading property sellers to choose their estate agents more prudently. Market analysts say this can spell bad news for estate agencies operating online. While the last quarter of 2022 was stable for many property agencies, and there is a positive undercurrent in the market swelling. Mortgage approvals are crashing, and there are fewer buyers. In November 2022, mortgage approvals were significantly below their 10-year average. It is clear from the emerging trends that the property market is now entering a buyers cycle, forcing sellers to be more selective in finding the right route to sell their property. Online agents are going to be in for a tough time in the coming months.
According to TwentyCi, the UK housing market delivered 289,635 new instructions in Q422. This is up by eight percent year-on-year but down 28 percent compared to the third quarter of 2022. This can be attributed to a seasonal decline. The impressive 28 percent quarter-on-quarter decrease is a seasonal trend. A look at the fourth quarter of 2022 reveals eight percent growth on a year-on-year basis but only minus one percent compared to the pre-pandemic quarter four of 2019.
This can be a sign that the housing supply is relatively stable. The sign of a major problem came in data for November 2022. It revealed mortgage approvals much below the 10-year average. This reveals a shift toward the buyer’s market, and that is why online agents will feel the heat in 2023. For home buyers, 2023 could be the best time to realize their dream of owning a home. Buyers must take a long view as the UK housing market performs cyclically. While there are enough indicators that prices will drop this year, there is no clear assurance that they won’t increase it has happened many times in the past.
The Help to Buy equity loan facility is no longer available. But homebuyers can take advantage of schemes such as shared ownership and First Homes to enjoy affordable rates while buying homes. What we here at Ringley see for 2023 is a small drop in inflation, rental growth continuing, and downward pressure on house prices
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