In a recent survey of partners in the real estate, property, relocation and removals industries, Please Connect Me found their number one concern for the property market in 2023 is a lack of available housing stock.
Please Connect Me carries out an industry survey every year to get an overview of changes and developments in the UK property market.
Our business is built around making moving in and setting up utilities easy for thousands of movers, agents and households across the UK. Staying ahead of property trends helps us prepare for what our clients will need so we can offer the best possible service.
What are industry professionals concerned about in 2023?
The number one concern for industry professionals surveyed was limited property stock. More than 73% of respondents listed low levels as housing stock as one of the major challenges they foresaw for their business in 2023.
52.6% of respondents listed general economic conditions this year as a cause of concern, making it the second most common selection. In a similar vein, inflation was selected by 50% of those surveyed as a potential obstacle to those working in the property and home move markets.
Why are housing stock levels low?
Low levels of housing stock in the UK have been a concern for several years, with the Financial Times warning in 2021 that the problem ‘would not be resolved’ that year.
In Savill’s April 2023 housing market update, they suggest that the lack of mortgage availability was a major factor in driving low overall housing stock. With fewer movers able to secure a mortgage, many of them stayed put, with the properties they would have put up for sale not entering the market.
Demand is now rising in line with falling mortgage rates, however, with homes on the market actually rising to 25% above the pre-Covid average in March. Similar, if less dramatic, rates of recovery have been seen in new mortgage approvals and new sales agreed.
Overall market expectations are bright for 2023
Despite concern over housing stock, general economic conditions and inflation, the sentiment of the responses to our survey were positive regarding the health of the UK property market. 68% of those we spoke to did not expect an economic recession to affect their business in 2023.
We also saw less of an impact from Brexit on the number of relocations into the UK than expected, with 74% of agents reporting no change and 8% seeing an increase in those looking to emigrate.
While the cumulative effects of COVID, Brexit and inflation are still being felt, the UK property industry is starting to bounce back.
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