The property market will provide plenty of opportunities in 2023 but realistic pricing will be essential, according to Kris Mclean, MD of The Guild of Property Professionals.

While conceding that a sales slowdown is likely over the coming months, Mclean insists that this should be seen in context of the “frenzied” post-pandemic market.

“Since June 2020, average property prices have risen by close to £50,000, the equivalent of 24%, with lockdown and lifestyle changes spurring the market,” Mclean commented. “Single-digit price correction is predicted for 2023/2024 before price growth is anticipated to return in 2025. Buyers will continue to benefit from the 0% rate of stamp duty up to £250,000 until March 2025.

“With almost one in three movers ‘needs-based’, such buyers will present sales opportunities,” Mclean added. “However, realistic pricing for market conditions will be paramount to achieving a sale as the market re-calibrates.”

According to Mclean, this year is set to be the busiest in the property market since 2017, with the exception of 2021. “Sales volumes are predicted to be around one million in 2023, a level more on par with the pre-pandemic norm,” he said. “October saw a 13% uptick in new supply to the market compared to a year ago, although stock levels remain low by historic standards.”

Turning his attention to the rental market, Mclean obsevered that demand for quality rental housing continues across the UK. “A shortage of stock and additional demand from prospective buyers, who may well rent as opposed to buy, continues to fuel prices,” he said.

“Average rents in the UK rose again in October to £1,171. Excluding London, average monthly rents now stand at £976. Annual rental growth in Scotland has doubled in the past year, with emergency legislation passed by the Scottish government to freeze rents and evictions for both the private and social rented sectors until at least 21st March 2023.

“There is no doubt that 2023 will inevitably prove a very different housing market to 2022, but there will still be buyers who need to buy, and sellers who need to sell. Over the longer term, forecasts for growth remain positive,” Mclean concluded.