London Property Market Performs Better Than Expected In 2023
The London property market started 2023 on a positive note, which came as a surprise to many, given the spike in mortgage rates following the mini-Budget in September.
Most property experts anticipated a significant market cooldown in 2023, but recent data shows that the market performs better than expected. Let's take a closer look at the market performance and outline upcoming trends.
London Real Estate Market Performance 2023
New market researches suggest the third week of 2023 saw the fourth-highest number of offers accepted in London during a single week in January in the decade.
This trend reflects that the property demand is still strong, including new builds homes in London. The number of new prospective buyers registering in the first three weeks of 2023 was 6% higher compared to the same time in 2020, which was a year of heated demand.
As for the stock levels, the number of new sales instructions also hit high thresholds in January 2023, meaning that many sellers are eager to sell their homes. As a result, the predicted double-digit price falls are unlikely, given the recent market performance.
Market Outlook For 2023
Although the market has started the year on a positive note, there are still some caveats to consider. First of all, we should see if current trends were just a short-lived bounce-back.
Moreover, the resilience of prices and sales volumes will be put to the test in the spring when even more buyers and sellers enter the market. Interestingly, by that time, virtually no five-year fixed-rate mortgages below 4% will remain in circulation.
Anyway, many experts agree on a potential decline of a few percentage points this year in Prime Central London (PCL) and Prime Outer London (POL) as the reality of higher mortgage rates sets in. However, if prices were to remain flat or even rise slightly, it would not be a big surprise, given the current market demand and supply levels.
