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What lies ahead

The property market in the UK has been subject to a range of changes in recent years, and with forecasts suggesting that the economy may be on the edge of a recession, this could lead to further cooling off periods for the market. In 2023, these trends are expected to continue, meaning prospective buyers and landlords should pay close attention to what is happening in the sector. This article discusses the property market trends in 2023.

Mortgage rates are one of the most important factors influencing the property market, and they can often determine whether it’s a buyer’s or seller’s market. In 2023, mortgage rates are predicted to fall even further due to stabilised markets and removal of ‘Truss premium’ from many lenders’ products. This will make it easier for people to get mortgages at more affordable prices and so could lead to an influx of buyers looking to take advantage of these lower costs.

Rental prices are also set to remain high in 2023 as demand outstrips supply. With people waiting for mortgage rates falling further before they make a purchase, this could drive up demand even further in the Private Rented Sector (PRS). Landlords should therefore look at ways of capitalising on this trend by offering competitive rental deals or providing additional incentives such as flexible rent payment structures.

What’s in store for short term loan products

Loan product with short-term repayment durations are still competitive and attractive to borrowers, even during the initial tough market conditions of 2023. Variable and tracker rate loans, as well as specialist bridging and development finance products, have and will remain an attractive financing option for those looking to purchase goods or services requiring quick access to capital. In the final quarter of 2022, bridging finance saw an increase in popularity, as investors  took advantage of the below-market-value transactions as prices fall, this reflects some potential distress in the market.

Although the economic uncertainty of 2023 is causing a lull in some markets, the UK property market is remaining resilient enough for potential opportunities to arise from a price correction. This could lead to an uptick in purchase activity by those looking catch a good deal before prices rise again or bouncing back from losses experienced in other markets. Specialist short-term lending options are perfectly suited for this kind of investment activity allowing investors to take advantage of high returns that require only short-term commitment.

As economic conditions become more challenging, it is necessary for businesses and individuals seeking financing solutions to be aware of all their options. With the global economy still unpredictable and not out of its slump yet, short-term lending products remain a viable solution offering quick access to capital without long-term commitments or crippling interest rates. Finding the right lender can give you peace of mind while exploring ways to get your projects off the ground quickly and efficiently–and hopefully at a profit too!

Finally, one trend we are likely to see emerge in 2023 is a focus on green initiatives within the property market. To meet environmental standards set by governments around Europe, landlords will have no choice but to invest heavily into energy efficiency schemes. This means specialist finance industry providers will become ever more vital for those wanting access to green financing options that allow them get ahead of regulations while still maintaining profitability in their business models.

To sum up then, 2023 looks set to be another year where change is present across all areas of the property market. Buyers should take advantage of low mortgage rates while landlords should consider investing into energy efficiency projects if they want stay competitive within their respective markets. As long as both parties remain aware and adaptable however, there is no reason why they won’t be able enjoy successful investments in 2023 and beyond!

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