2023 predictions for property by expert at Bird & Co.

Conveyancing solicitor Daniel Chard, Partner at Bird & Co, reveals his 2023 predictions for house buyer trends amidst the end of a turbulent year for the housing market.

With the cost-of-living crisis at the forefront of everyone’s mind, buyers are less likely to take risks with their investments and will think more carefully about the kind of property to look for in the coming year.

The 2023 buyer prediction highlights from the property expert include:

• • Less demand from first-time buyers
  • Property prices remaining low
  • A growing demand for sustainable housing
  • Interest in weather-dependent homes
  • More people moving to the countryside

Less demand from First-Time Buyers:

With the current cost-of-living crisis, fewer people may be feeling economically secure this year. For first-time buyers, who may already be stretching their finances, house-hunting could be put on hold until there is more certainty on which way the property market is going to head.

Rightmove’s monthly house price index showed that first-time buyers were the most hesitant to purchase a house, with the demand down by 26% in October.

Interest rates have also shot up in recent months, which has added hundreds of pounds to mortgage payments. Property website, Zoopla, has reported that demand for housing has dropped by 44% since the government’s mini budget, which sent interest rates soaring. The average a year ago for a two-year fixed rate was priced at 2.25% but, in the past few weeks, new rates have reached above 6%.

With mortgage rates rising and people becoming more conscious of their budgets, the demand from first-time buyers is expected to be lower in the new year.

Property prices remaining low:

With there being fewer buyers and demand for homes, there is less need for sellers to make offers above the market price. This confidence could lead to the recent reduction in housing prices either continuing or plateauing.

If mortgage rates stabilise and people become less conscious of their heating bills in the Spring, the market will improve further.

A growing demand for sustainable housing:

An increase in demand for sustainable housing can be attributed to a growing eco-conscious attitude, meaning people are now favouring greener and more sustainable purchases. A recent survey found that 82% of buyers said they would be willing to pay more for an energy-efficient property.

This demand can also be seen in the growing popularity of energy-saving materials such as solar panels and heat pumps, as well as the government’s ‘Future Homes and Buildings Standard 2025’. These are a set of objectives that will ensure every new build home after 2025 will cut carbon emissions by 75 to 80% compared to the homes built before.

On top of this, as household budgets have become tighter due to the cost-of-living crisis, electricity usages in homes are a worry for many people. With the cost of repairs and maintenance on things such as boilers, many people are now opting for more efficient uses of energy. When it comes to prospective homebuyers, this could mean properties that are well insulated and have solar panels fitted would be a more favourable option.

Weather-dependent homes:

After the low rainfall and record-breaking temperatures this summer, which saw Europe’s worst drought in 500 years, the prevalence of weather-dependent homes has become an increasingly popular choice for prospective buyers.

Green living mostly concerns the conservation of water, however, weather-dependent homes are predicted to pick up all over the globe, and not just be exclusive to drought-stricken spots.

In particular, younger generations have become increasingly invested in sustainable living. New types of sustainable housing include rainwater harvesting architecture, drought-tolerant landscape design, and rain chain drainage.

That said, droughts are not the only concern; extreme weathers come in all forms, and the UK could see flooding increase as the sea level rises. A scathing article by the Guardian criticised plans for building thousands of homes on flood plains, with the climate crisis looming. Despite the low availability of housing, perhaps making these riskier homes appealing, we predict house buyers may be less likely to buy in these areas as climate change continues.

People moving to the countryside:

With average house prices still being considerably more expensive in the city than in the countryside, relocation could be on the cards for a number of people next year. This shift can also be attributed to post-pandemic work-based habits such as the growing popularity of flexible working.

As a result, people’s needs when house hunting are changing, and it is expected that individuals will be able to be far more flexible with where they choose to live.

Get in touch with Bird & Co.’s conveyancing solicitors

If you are planning to purchase, sell or remortgage your home in 2023, our friendly conveyancing solicitors can provide the assistance you need for a smooth transaction. Get in touch with our conveyancing solicitors by giving us a call or getting a quote online.

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