There has been some doom and gloom in the press with predictions of a house price crash in 2023, but don’t despair – it’s not backed up by the evidence so far.
In early December 2022, the ESPC reported that house prices to the end of November, across Edinburgh, the Lothians and Fife rose by 8.8%. It also reports a positive start to 2023 with a 22% increase in home report requests and a 30% increase in viewing requests. There is still an appetite out there!
ESPC Chief Executive, Paul Hilton says “The market in Scotland has remained relatively consistent, and we expect that demand for quality local housing stock will remain, albeit at a calmer pace than has been seen recently.” We’ve certainly found this at Gibson Kerr. Good quality properties attract plenty of interest.
In addition, the Bank of England has said the economy performed better than expected between October and December, and this will reassure the buyers. Inflation is expected to fall rapidly in 2023. In November 2022, the Office for Budget Responsibility predicted it to fall to 3.8% by the end of 2023 and there are predictions that we’ve just about reached the peak in interest rate rises. The next two Bank of England announcements, in February and March, will give more clarity, but mortgage rates are starting to fall. The Sunday Times reported on 8th January that Barclays is offering tracker mortgages at 0.34% above base, giving a total rate of 3.84%.
UK wide, some of the big lenders have been predicting house price falls of between 5% – 8%, but in Edinburgh (and lots of other places), demand still tends to outstrip supply, so it’s difficult to see a significant drop in house prices locally. There might be a softening of prices, with sale prices being closer to home report valuations, but this has to be considered in the context of the ESPC reporting price rises of around 20% since the start of the pandemic.
The Gibson Kerr Property Team in Edinburgh are happy to give you guidance on what your property may be worth in the current market, and to discuss the sale process from listing your property, dealing with offers and the conveyancing work through to completion. We can also give you full advice on purchasing a property. For further information, contact us on 0131 226 9167 or property@gibsonkerr.co.uk.
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The content of this page is for information only. It is not intended to be construed as legal advice and should not be treated as a substitute for specific advice. Gibson Kerr Ltd accepts no responsibility for the content of any third party website to which this webpage refers. Gibson Kerr Ltd is regulated by the Law Society of Scotland.