Average house price has increased by around £17,500 this year – Zoopla
Affordability and value for money will be key to the housing market outlook for 2023, the property website said.
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.House prices are around £17,500 higher on average than at the start of 2022, according to a property website.
Zoopla said property values have increased by 7.2% across the year – but it added that there has been a sharp fall in demand since the summer.
The average UK house price is £258,100.
Weaker demand from higher mortgage rates, cost-of-living pressures and low consumer confidence is hitting price growth, the website said.
Sellers are accepting bigger discounts to their asking prices to achieve sales, with 4% being knocked off prices typically.
We expect buyers to return to the market in the new year, but they will be far more cautious and price sensitive
Zoopla’s report said: “We expect discounts to widen further in 2023.”
The website said demand in some coastal and rural areas, including parts of mid-Wales and the Lake District, has weakened amid higher prices and economic uncertainty.
Buyer interest in affordable, accessible urban areas is holding up better, including in places such as Bradford, Swindon, Coventry, Crewe, Southend and Milton Keynes, Zoopla added.
Looking ahead to 2023, affordable urban areas and apartments are expected to see pricing perform better than the UK market generally.
After a frenetic period for the country market, city living has come back strongly as workers have returned to the office, and the lifting of pandemic restrictions have boosted the appeal of urban living
When it comes to property types, flats have underperformed compared with the rest of the market and are likely to see increased demand in 2023 as buyers seek better value for money, Zoopla predicted.
Richard Donnell, executive director at Zoopla, said: “We expect buyers to return to the market in the new year, but they will be far more cautious and price sensitive.
“Serious sellers need to be realistic on price and get the advice of an agent on how to market their home. While mortgage rates will start 2023 lower, the impact on pricing will be felt more in the higher value markets of southern England than the more affordable markets elsewhere.”
Chris Druce, senior research analyst at estate agent Knight Frank, said: “After a frenetic period for the country market, city living has come back strongly as workers have returned to the office, and the lifting of pandemic restrictions have boosted the appeal of urban living.”