Just in the last year, we have seen; three different prime ministers, the death of Queen Elizabeth II, a record-breaking 40-degree heatwave, the Russian invasion of Ukraine, the rising cost of living crisis, rising energy costs and much, much more.
It has been interesting for the property market, and as content writers for Property Press Online, we have felt honoured to bring you the latest news regarding mortgage rates, sustainability, and how you can look after your home and keep energy costs low.
It’s almost 2023, and you may have already read articles reporting pessimistic and stark predictions for the new year. But not everything has to be dark.
In this article, we will cover all forecasts and UK housing market trends that have been suggested. We will cover the following:
- Homeowner behaviour & house price changes in 2023.
- Mortgage rate changes in 2023.
- Housing developments & sustainability in 2023.
- Interior design in 2023.
- Web3: Property predictions for 2023.
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Homeowner Behaviour & House Prices in 2023
Zoopla believes that the once well-known “moving to the countryside” trend is beginning to fade as, since the pandemic surge, the number of homes sold in the countryside is decreasing dramatically.
Although media outlets have been talking about a housing market crash, the UK market has seen positive growth over the last year. In December 2021, the average house price was £275,000; since then, house prices have increased by 6.64% to £294,559. The house price increase contrasts with the current Bank of England Inflation rate of 10.7%, which is soaring. But the inflation rate is expected to drop over the next year or so to a target of 2%.
However, this should be considered cautionary as data from Rightmove suggests that newly listed property valuations have dropped by 2.1% in December 2022, which is the most significant drop for a December in 4 years, which may put off some would-be house sellers in the New Year.
Mortgages in 2023
Due to the cost of living crisis, according to RICS, many homeowners will struggle over the next year to make mortgage payments, increasing the rate of repossessions.
We will continue to see people trying to find affordable housing with affordable mortgages and an increase in the number of people looking for rent-to-live properties. Landlords should see an intake of potential tenants and an increase in yields as people choose to rent over owning.
The Property Buying Company believes the base rate will rise by 1% by 2023 summer, remaining at 4.5% until the start of 2024, when the rate will drop back to 3.5%. Capital Economics predicts the base rate to increase by 1.5% to 5% next year before falling to 3.25% in 2024. Competitor, Savills, believes the base rate to rise by 0.5% in 2023, remaining at 4% until 2024 before falling back down.
Housing Development & Sustainability in 2023
In 2023 we can expect to see a rise in the number of prefabricated built homes, especially ones that have 3D printed designs intricate within them. This is because the 3D printed constructions minimise the excess waste created, cut labour time, and streamline logistics. You can make almost any shape or curve with a 3D design construction, which is an architectural dream.
Another development design we may see more of in the new year is the use of local earth within a building; this trend was seen on the big screen when it featured in the underground Passivhaus in Canterbury on Grand Designs.
The use of cork and hemp in building construction will also be massive in 2023. Hemp is being used as hempcrete which helps to increase the thermal capacity and decrease the footprint of many modern homes. Cork, usually used as a flooring material, is used as sustainable cladding during construction due to its weather resistance and thermal benefits.
Interior Design 2023
The overall trend for Interior design for our homes in 2023 is to bring joy inside, continuing and refining the best trends from last year and moving away from all-white homes. Predictions for next year suggest that homes across the UK will be rolling out the bright, jewel colours or going with a more muted, desert colour palette.
The past year has seen the use of whimsical shapes, fun patterns and bright colours in some homes, but also, as a real contrast, very minimalistic white dwellings, which aren’t predicted to disappear entirely but transform into refined interiors.
For example, white houses are predicted to take inspiration from the city of Paris, with traditional mouldings, white walls and traditional furnishing or continue following the Scandinavian minimalist style.
Alternatively, coloured marble will be used as countertops in pinks, reds and dark browns. There is also the movement toward using wall tiles to bring featured walls to kitchens, with the design reflecting illusion tiles or looking like wallpaper, florals or wood.
Web3: Property Predictions for 2023
As many industries begin to look to the Metaverse and the capabilities of business in the Web 3 space, we can expect a move for the property market & its property investors.
Although the UK property market has been slower to draw off picking up Web3 applications, we can expect many property experts to start exploring the space in 2023. Be it through AR or VR property viewings, blockchain-based smart contracts, secure and transparent property listing services or more accessible property investment payments, especially when there are multiple buyers.
That’s all, folks! If you have any questions about the property predictions for next year, please get in touch with us!
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Journalists & Writing Wanted
Unusual section, we know! But, it would be appropriate to end the year how we want to start next year. We are an online property news site looking for writers! We, unfortunately, can’t pay, but it may be a fantastic opportunity for anyone looking to get their foot in the door. Please follow this link if you are interested in writing for us and gaining experience for your portfolio.
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