Housing Market Update - H2 2023

The housing market has been subdued over the last six months due to the wider economic environment. Nationally, transaction levels were down 20% in December 2023 when compared to the previous year as the increased costs of borrowing has dissuaded hesitant purchasers.  

Despite this, the housing market has fared relatively well, many forecasts made at around the time of the Government’s ill fated ‘mini budget’ have proven to be overly pessimistic and seem to have underestimated the impact of the supply/demand imbalance for housing, the level of protection that fixed rate mortgages have afforded homeowners and the strong employment market.  

Although the Bank of England increased the base rate in July and August 2023 to reduce inflation, average residential pricing levels have eased, and in some cases shown early signs of a recovery, rather than fallen to the extent expected.   

Activity across our portfolio have picked up following the Christmas break with sales agreed for numerous properties meeting or exceeding budgets.  Whilst is it is too early say if this will continue, the market is definitely moving in the right direction.