With new data from Rightmove suggesting average house prices in the UK increased by 1.8 per cent in May, David Hannah, Cornerstone Group International Chairman, says the 'doomsters' have got it wrong and he anticipates further growth in 2023.
At the start of 2023, experts predicted British house prices would fall by as much as 15% by 2024.
But since then, the economy has proved to be more resilient than expected and has so far avoided predictions of a recession.
This has contributed to a better economic outlook and steadier mortgage rates, which has offset the impact of the Bank of England's interest rate rise to 4.5%
The renewed confidence has encouraged a wave of buyers back to the market, increasing the number of sales agreed upon - Rightmove reports buyer demand was 3% higher in May compared with the same month in 2019 before the Covid-19 pandemic distorted the market.
Furthermore, encouragingly, the average number of properties on estate agent books rose slightly from 45 in April to 47 in May.
The UK is going through a re-adjustment period regarding property prices and is slowly adapting to the new rates of mortgages.
[W]e are already beginning to see renewed stability due to the market's resilience, which has resulted in a wave of buyers returning.
However, we are already beginning to see renewed stability due to the market's resilience, which has resulted in a wave of buyers returning.
The jump in new seller asking prices is a reaction and a sign of increasing confidence from sellers.
One reason for this increased confidence may be that the negative start-of-the-year predictions for the market are looking increasingly unlikely.
I predict that there will be no crash, and we won't see a 7-10% fall in property prices that we saw in the noughties.
Over 2023, I expect to see low to mid to single-digit growth in the UK property market.
