What’s Happening In The UK Property Market? January 2023 Update

29th January 2023
Home > News > What’s Happening In The UK Property Market? January 2023 Update

Thinking of selling your home in Grantham

The housing market remains uncertain heading into 2023, but there’s some optimism among homeowners and first-time buyers, particularly as one developer has launched an innovative new scheme. Read on to find out the latest.

House Prices See New Year Bounce Back


While house prices fell towards the end of 2022 (see below) and are expected to continue falling in 2023, there was at least some positive news to start the year for potential sellers!

Property portal, Rightmove, has reported the biggest New Year bounce since 2020, with average prices rising by 0.9% according to their data.

And while there’s usually an increase in demand in January, the figures still make for positive reading for sellers, as there’s been a surge in demand from potential buyers too. Rightmove has reported a 55% jump in the number of people contacting estate agents about homes listed on the site in the first two weeks of the year.

This is coupled with an increase in the number of homes entering the market, as the company has also reported that the 5th January was the third busiest day ever for homeowners asking estate agents to value their home.


House Prices Drop For Fourth Month in a Row 


High interest rates and the rising cost of living contributed to a fall in house prices for a fourth consecutive month in December. Figures released by major lender, Halifax, showed a 1.5% decrease in the average asking price, which now stands at £281,272. 

However, while there’s traditionally a seasonal slowdown in December, the fall wasn’t as sharp as expected, and was lower than November’s drop of 2.4%. 

On an annual basis, prices grew by 2% compared with December 2021, representing the slowest year-on-year growth since October 2019. 

And while the market slowed significantly towards the end of 2022, average prices still remain way above pre-Covid levels, and so far the start of 2023 is looking similar to the starts of 2016, 2017 and 2018, although some forecasters are predicting a 10% drop in 2023. 


Mortgage Approvals Drop to New Lows


Figures released by the Bank of England suggest that mortgage approval levels have fallen to their lowest level in two years.

Just over 46,000 mortgages were approved in November – a drop from October’s figure of 58,000, as would-be homebuyers have been increasingly put off by rising interest rates and cost of living pressures.

The slump is expected to continue as uncertainty takes hold of the market and the cost of living continues to be volatile.


Rents Rising at Fastest Rates on Record


Data from the Office for National Statistics (ONS) shows that rental rates increased by 4% on average in 2022 – the fastest rise since records began seven years ago.

A quarter of private tenants surveyed in December said their rent had risen in the previous six months, as many landlords have passed on the increases they’ve faced on their buy-to-let mortgage rates.

The ONS figures also showed that renters pay significantly more on their living costs than homeowners, with their weekly expenditure on housing accounting for 24% of their income – 8% higher than those with a mortgage.


New ‘Save To Buy’ scheme launched for first-time buyers


An innovative scheme by one leading home developer could pave the way for thousands of renters to get onto the property ladder.

The initiative, set up by new homes developer, Fairview, will see all of the money paid by tenants in rent be put towards the deposit for their home.

Under the scheme, rent is paid at a fixed cost for between six months and two years, but instead of going to a landlord, the money will be set aside until the renters have a big enough deposit to obtain a mortgage on the property.

At that point, they can go through the usual mortgage application process and buy the home they’ve been renting.

The scheme is currently running at two of Fairview’s developments – New Hayes in West London and Epping Gate in Loughton, Essex. However, it’s expected to be rolled out to a number of other developments over the next few months.

The scheme is open to anyone who is classed as a first-time buyer, and the only stipulation is that you must have a deposit equivalent to 1% of the property’s value when you first move in. This is handed over to the developer when you first exchange contracts, and from that point, 100% of your rent will go towards the deposit to buy the property. 

There’s also an option to top up your monthly payments if you can, which means getting on to the property ladder sooner.


For more property news and updates and a more detailed overview of the Grantham area, get in touch with Secure My Sale Estate Agents. We are your local property experts. Call us on 01476825258 or email support@securemysale.co.uk or you can visit our website www.securemysale.co.uk for more informative blogs and for all of your Grantham property needs and requirements. Book an chat about YOUR requiremnts in the Grantham property market. 

Selling the way YOU want to !

Share this article
  • icon
  • icon

Related News Articles

Are You Selling Your Home In Grantham? Don’t Overlook The Importance Of Your Garden!

Giving Your Garden A Makeover Can Create Additional Value To Your Home   Many sellers in Grantham are surprised to discover that an attractive garden can add as much as 20% to the value of their home. In fact, at Secure My Sale Estate Agents Grantham, we’ve found that giving your garden a makeover can add more value to your home compared to building a new extension...

Struggling To Sell? Why Setting The Right Asking Price for your Property Is Vital

Is the price right? Making the leap to sell your house is a big decision, and usually comes after lots of discussions about where to move, why, and what sort of house to buy next. But one key aspect of selling your house, and perhaps one of the most important, is the price. What you get for your home may affect what you can afford next. Getting the price right is absolutely c...

Buying A Property in Grantham? Don’t Fall Victim To Online Fraud

Buying a home can be a frustrating process. It’s no surprise, then, that when the end is finally in sight, you can’t wait to seal the deal by transferring your deposit or final balance to your legal representative. But, before you do, it’s important to stop and think carefully. More buyers in Grantham than ever before are falling victim to online fraud. When...

Property Market Update: What’s Happening In The UK Property Market

House price growth is finally starting to slow down, with some property experts predicting a crash this year. In other news, a shift in renters’ demands has been revealed by one leading property website, and fans of a popular TV series can get their hands on one of the houses used in filming.  Read on for all this and more in our May property market update. UK Hous...