Good riddance to 2022… How was it for you?

Just as we all got used to the turmoil of the 2020s, 2022 said “hold my beer” 

• Inflation hit a 30-year high in January
• Russia invaded Ukraine in February 
• Interest rates rose by 0.25% in March
• April saw the energy price cap rise by 54%
• Brent crude oil rose up to just shy of £100 a barrel in May
• ONS figures showed the economy shrank by 0.3% in June
• Boris Johnstone resigned in July
• BoE announced the largest single rise in interest rates for 27 years in August
• We lost our beloved Queen in September
• October saw more governmental turmoil as Liz Truss resigned and Kwasi Kwarteng was dismissed
• The BoE raised interest rates again in November, this time by 0.75%, the biggest hike since 1989
• December has seen continued disruption due to industrial action across many sectors

So…three different prime ministers, massive energy bills and rising interest rates. Coupled with disrupted supply chains, the cost of living crisis, inflation at a 41-year high, and an ongoing hangover from Brexit and COVID.

To say 2022 has been challenging would be putting it mildly.

Yet the housing market remained pretty solid throughout most of the year. Only in the last quarter have we seen a softening of buyer demand.

The question you’re all asking is “what happens next?”

The year to come

So, what does 2023 hold?

Well nobody has that insight, speculation over a crash has lessened of late, but a mini-correction might be on the cards. Somewhere in the region of a 5-10% pullback may be seen, but the 20% catastrophe that was being touted directly after the disastrous mini-budget back in September now seems to be yesterday’s news. 

It’s important to remember just how resilient the UK’s housing market has been historically. Even over the last few years, crashes have been expected but haven’t materialised. Both Brexit and a global pandemic could have brought the market to its knees but didn’t.

And, let’s not forget, people still need somewhere to live.

Demand, although less than it was earlier last year, still outweighs supply. There’s still a shortage of housing across the country. People will still need to move home, and rises and falls are all relative for most homeowners. So the market is still very strong.

What you may lose on a sale, you’ll gain on a purchase.

A safe bet

Forecasting something like the property market is unwise…

We can make educated guesses, but they remain just that, guesses. Crystal balls are of little use in Sandy.

There is one thing you can be certain of however, Lane & Browns will be the safest pair of hands for your property transactions in 2023. We’ve been through the lot since we started in 1988, so if you do decide to enter the property market, whether it be a seller, buyer, tenant or landlord then you can trust us to deliver for you in 2023

For now, though, everyone here at LANE & BROWNS wish you and your family a happy and safe New Year.