According to Nationwide building society, property prices fell by 1.4 per cent in November. That’s the largest drop since June 2020, just before stamp duty measures were introduced to kick-start the property market post-pandemic. Not only that, but demand for property has also fallen with figures from property website Zoopla showing a 44 per cent decline in demand and a 28 per cent drop in sales.
There is little doubt that the property market is slowing, and there are predictions of further price drops throughout 2023. So, what does that mean for those hoping to sell a luxury property in the next year?
If you need to sell, be realistic about price
Property experts are united in their belief that property prices will continue to fall throughout 2023, with predictions ranging from five per cent to as much as 30 per cent. There are, however, theories that the prime residential market will fare better than mainstream property, due to the weakness of the pound and sustained interest from international buyers.
Savilles Estate Agents suggest that prime property prices in central London could experience a two per cent fall, with prices in outer London predicted to experience a larger drop of five per cent. Mainstream property across the whole of the UK is expected to experience a 10 per cent fall in prices.
If you want to sell in the next year, it’s important to be aware of the predicted price drops and declining demand, and market your property appropriately, according to Garrett Whitelock, a leading estate and letting agents in Shad Thames. To avoid your property sitting on the market for an extended period of time, it’s important to price competitively.
Ensure your property is looking its best
We’ve seen a transition in the property market over the last six months, from a seller’s market to a buyer’s market. With fewer buyers around, you’ll need to ensure your property is looking its best to get a sale over the line.
Choose the right agent
In a challenging market, it’s important that you select the right agent to market your property. Choose someone who has recent experience of selling similar properties in your local area. This will ensure they have a robust knowledge of your target market and know how to attract an appropriate buyer.
Danny Luke, managing director of property buying company Quick Move Now, says: “The UK property market has been through a lot this year. We started 2022 with an overheated market pushing property prices to unexpected heights, but in recent months the tide has turned and we’re now experiencing a downturn in the market as a result of record-high inflation and rising interest rates.
“As we move into 2023, it is definitely becoming more challenging to sell a property. Marketing strategies used through the summer months simply aren’t appropriate for the changing market conditions. Properties will still be bought and sold in 2023, but at a lower volume and lower purchase price. Those hoping to secure a sale in the next 12 months will need to ensure their property is priced well and marketed correctly.”
