Now that 2023 is in full swing, the housing market and landlords encounter several challenges and opportunities that will define the industry in the forthcoming months. Various factors ranging from shifting demographics to economic patterns will influence the housing market and landlords’ prospects in 2023.
Get in touch with reliable estate agents in Manchester to harness the upcoming changes to the best of your abilities.
An Overview Of Housing Market Predictions For 2023
Here is a quick brief of the housing market in 2023:
- In recent times, the market has witnessed a high demand and low supply scenario, resulting in increased prices and a competitive environment for potential buyers.
- It is challenging to predict with certainty what the housing market and landlords will face in 2023 as there are several variables at play.
- Nonetheless, some experts anticipate a possible shift in demand from urban to suburban or rural locations due to the rise of remote work and people’s inclination towards more space and privacy.
- In the upcoming year, landlords may face certain challenges, such as changes in rental laws and regulations and potential economic instability
Take a closer look at the upcoming housing market trends that will be seen in 2023.
Rise In Demand, But Shortages of Supply
There has certainly been a rise in the demand for rental properties. Experts have observed a shift from urban to suburban living, especially due to a steep hike in the remote working culture. Moreover, high housing prices are also driving people to rent homes instead of buying them.
The scarcity of rental properties and high demand is a growing concern that has received relatively little attention. As a result, rents for houses and certain flats are continuing to rise, creating a market that heavily favours landlords with a vast pool of potential tenants to choose from. Despite this, landlords need to ensure their property is well-maintained and offers a high-quality standard of living for the tenants.
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Month-on-Month Fall In Housing Prices
House prices may fluctuate monthly, but year-on-year rises are more reliable indicators. Despite a drop in annual growth throughout 2022, Zoopla data shows that average house prices increased by 7.2% over the year, equating to approximately £17,500 for an average property. Forecasts indicate that property prices will likely be higher in five years, presenting a positive long-term outlook for landlords.
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Strong Focus On Energy Efficiency
Energy efficiency will remain a priority due to the focus on climate change and the cost of living crisis. Smart meters and other energy-saving measures have been heavily promoted. With energy prices soaring in 2023, we can expect increased coverage on effective ways to reduce bills and environmental impact.
Additionally, news on the proposed introduction of a minimum ‘C’ EPC rating for new tenancies in England, Wales, and Scotland may be forthcoming. Compliance for existing tenancies is proposed for 2028, and further clarification is anticipated this year.
New Housing Policy Announcements
As the nation approaches the 2024 general election, it is only natural to anticipate additional housing policy announcements. The Conservative Government released two housing-related White Papers in 2022:
- ‘Levelling Up the United Kingdom in February
- ‘A Fairer Private Rented Sector’ in June
We can expect to hear further specifics on these proposals from the Conservatives, including potential legislation, as well as announcements on proposed new policies from other major parties.
To Sum Up
Overall, 2023 is shaping up to be an interesting year for the housing market and landlords. While there are challenges to be aware of there are also opportunities for landlords to meet the evolving needs of tenants and capitalize on the growing demand for rental properties. By staying informed and adaptable, landlords can position themselves for success in the year ahead.
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