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UK Property Market Summary and Predictions for 2023


The UK property market has undoubtedly seen a tumultuous period since the end of 2022.

Fluctuating statistics, record-breaking demand, falling supply, and concerning economic projections have left many scratching their heads and wondering:

'�Is UK property investment in 2023 a good idea?'

The following guide presents a summary of the property market in 2022, as well as a look towards what the future may hold for the rest of the year and beyond.

What Happened to the UK Property Market in 2022?



  • Despite a slight dip in property prices, the market remained strong, with the highest growth (12.5%) in the East and South West regions
  • The rental market also saw growth due to continued demand for rental properties


  • March saw the strongest monthly house price growth in 18 years at 1.1%
  • Low housing supply contributed to skyrocketing prices
  • The rental market grew by 10.4%, indicating ongoing demand


  • Rental growth was widespread across the country, with the highest increase in rental prices since 2011
  • Affordability became a concern as house price growth outpaced income growth


  • A 16% increase in mortgages for first-time buyers compared to pre-pandemic levels
  • Some areas experienced significant rental price rises, but overall growth started to slow down


  • Annual price growth dropped by around 5% from May to June
  • Property investment cooled down as the cost-of-living crisis began to make rising house prices unaffordable
  • Housing supply still low, but demand decreased as people prioritized other expenses


  • House price growth rose to one of the highest rates in 2022, most likely due to the lower prices from the stamp duty holiday in 2021
  • Rental prices were growing almost six times higher than pre-pandemic levels, with the strongest markets being in the North West


  • Rising living costs and reduced housing demand contributed to slower growth
  • Popular areas like the North West, however, continued to see high rental demand, with the region seeing growth of around 10%


  • The UK found itself in a complex political situation with the Government's controversial Mini-Budget, and the death of Queen Elizabeth II
  • Rental sector growth remained steady, but borrowing mortgages became more difficult with rising interest rates


  • The majority of the mini-budget was reversed, following a massive detrimental economic effect
  • As the cost-of-living crisis steadily continued, as well as the unstable economy, a cap on house prices was beginning to limit rates


  • House prices fell by -0.9%, the biggest drop since June 2020
  • Market activity decreased, with mortgage approvals returning to pre-pandemic levels
  • The end of the Help-to-Buy scheme affected affordability and resulted in falling prices


  • House prices fell for the fourth consecutive period, down -0.1% from November
  • Average rent decreased slightly from November but remained higher than the previous year

Property Market Predictors

Following a lack of demand for expensive property and more buyers preferring affordability, many experts predict a continued drop in prices across many regions, with interest rates rising alongside.

If prices do slip in 2023, though, buyers should write off the property market as a viable option. Recent forecasts show that, despite significant drops in 2023, the market is expected to recover, with certain regions predicted to see price growth of 11.7% by 2027.


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