End of Year Market Comment from Nick Churton

Nick Churton of Mayfair International Realty’s London headquarters takes a look at the UK’s property market in 2023.

Despite some gloomy predictions made at the beginning of 2023, the UK property market has performed surprisingly well over the past twelve months.

After a slow start, the joyous coronation of our new king in May drew a line under previous difficult months. By the end of the summer, property transaction levels were growing as confidence in the market returned.

Encouraging signs that inflation was under control were followed by the growing belief that bank interest rate increases would soon slow and in time cease altogether, while future mortgage rate reductions were expected. As the year unfolded these green shoots turned into fully-fledged growth.

Overseas buyers from Europe, the Middle East, and Asia also returned to the London market in relatively equal numbers. But most notable were the numbers of buyers from the US which were at their highest since 9/11.

No nation is immune from national and international events affecting its property market. We in the UK are as aware of that as anyone. But we have also learned to watch for recovery – as our English expression says, the early bird catches the worm.

As we take a breath over the Christmas and New Year lull, we are confident that the greater levels of activity experienced in the autumn and early winter will continue to grow. As mortgages become cheaper than they have been for several years and incomes rise, affordability will increase bringing new life to our property market.