Skip to content

20 Oct, 2023

Falling House Prices Make Property Investment More Affordable in 2023

We have some exciting new buy to let deals available right now. Don't miss out and secure the best Liverpool and Manchester investment opportunities, with projected rental yields of 10-15%!

    House Prices in the UK are Set to Drop

    For many, the current state of the UK housing market is a cause for concern. But should investors instead see the current housing climate as an opportunity?

    At the end of 2022, the average property price dropped to £262,068, falling for the fourth time in a row in December and resulting in the longest run of declines since 2008.

    Annual house price growth also stalled at the end of the year, with rates seeing a decrease of 2.3%.

    With rising energy costs and interest rates contributing to falling house prices, alarm bells may be ringing for many UK property investors.

    But what caused this drop in house prices, and what does it actually mean for those looking to invest in UK property in 2023 and beyond?

    The good news is that for investors looking to secure a buy to let property at a lower price before prices rise over the coming years, 2023 is the perfect time to get started. Read our latest property news blog to find out more.

    Shopping trolley with chart falling down

    Why Are House Prices Falling?

    Of course, this all sounds incredibly dramatic and appears to have come right out of the blue, but this price drop has been expected by many property experts for a long time now – due to two years of inflated house prices post-pandemic.

    However, despite the price crash being anticipated, the market has become more volatile than experts predicted due to the cost of living crisis and other similar factors.

    Alongside this, many experts are also forecasting a further decline in 2023. For example, Lloyds, the UK’s largest mortgage lender, expects prices to fall by 8% this year.

    This may seem slightly troubling, as if this happens, it could risk putting newer investors into negative equity, especially if prices fail to recover for some time.

    However, such a fall is not expected to completely erase the increase in house prices seen in the last year (the most recent House Price Index shows the average property price increase by 10.3% in the year to November to £294,910).

    A fragment of modern building

    What Does This Mean for Investors?

    Looking at all this data, it is no surprise that many investors are wondering if now is the right time to invest.

    However, despite how concerning these rates may appear at first, now is one of the most beneficial times to consider property investment.

    Prices are much lower due to the drop in house prices overall. Therefore, those who can afford to invest in property could actually see significant returns – especially in conjunction with a thriving rental market.

    Business man holding property hologram

    The Rental Market is Booming ​

    As the population in the UK continues to grow, there is still a severe lack of supply to meet the demand for housing.

    According to a report by Zoopla, demand for rental property is 46% above average, with the total supply being 38% below average.

    With the market expected to remain so volatile, more people will also be more likely to rent instead of buying a house outright.

    In fact, the number of renters in England and Wales has jumped by 28% during the past 10 years, according to the latest Housing Census data.

    With the current state of the market, as well as the lack of new affordable housing and the ongoing cost of living crisis, it is likely that rental demand will only continue to increase in 2023 – allowing for a great investment opportunity.

    'rent' text on wooden blocks

    Should You Invest in 2023?

    With prices significantly lower than before, and rental value continuing to rise, there could be a perfect chance for investors to get involved with property before prices skyrocket when the market recovers.

    At the height of the pandemic, house prices in the UK saw a significant drop, with averages falling by 0.6% between March and April.

    By the end of the year, though, these prices had risen to record levels and continued across the next two years, allowing for strong capital growth returns for those that had invested in property.

    Consider the current situation the same: a natural reset button for the market after a rather chaotic year.

    It’s also important to remember that this is not permanent. In fact, the latest forecast from Savills predicts house prices will rise by 6.2% in 2026 – so, for investors in 2023, it could be the perfect time to get involved before prices skyrocket after the market recovers.

    Businessman and 2023 blocks near house. Forecast of real estate prices on the new year. Trends and changes, new challenges for the economy and the impact on housing market. Mortgage loan rates.

    Learn More With RWinvest

    Whether you’re a veteran investor or not: the current state of the market might look slightly concerning.

    Like most investments, property can sometimes be difficult to wrap your head around.

    With over 18 years of experience in property investment, RWInvest is one of the nation’s top property investment companies, helping both newcomers and experienced investors find the best buy-to-let properties on the market.

    Our dedicated teams have vast knowledge about the property market and how it has changed over time.

    If you’d like to learn more about the current state of the housing market, get in touch with our sales team today.

    With specialists able to help you every step along your property investment journey, we have some of the best investment opportunities available in buy to let hotspots like Liverpool, Manchester and London.

    RWinvest Liverpool Office
    Avatar photo

    Reece Pape

    Reece Pape is a property writer at RWinvest. Reece is passionate about keeping property investors updated on must-have information and housing market news, utilising the latest property market statistics and data.

    Why Choose RWinvest?

    Here are three reasons to choose RWinvest for your next UK property investment.

    We have over 2,000 five-star Trustpilot reviews

    Multiple Award Icon

    We're a multi-award winning investment company

    We offer investments in the best buy to let areas

    Contact Us

    Contact Us

    Want to Get in Touch?

    Fill in the form to contact us today and a member of our award-winning property team will be in touch to help.

      I can honestly say they have put my mind at rest from day one answering all my questions I had , true professionals, I am not experienced in buying off plan or for a rental income but I have to say the process has been smooth from sales to Chloe in client care and now I’m handed over to the final stage for the site visits
      I feel very relaxed and happy with how amazing the team have been. I I can’t wait now to see the end built ! Thanks 🙏

      Kelly Webber

      Google Reviews Logo

      I have had the pleasure of experiencing exceptional customer service from RWinvest. Adam and Michelle were remarkable and were exceedingly supportive in facilitating the acquisition of two properties in Liverpool, at "The Gateway." Their guidance was instrumental in the purchase of the properties and I express my utmost satisfaction with their assistance, and I am inclined to not only endorse but also consider any property advertised by RWinvest.

      Narendra Rai

      Google Reviews Logo

      I am very happy and satisfied with RWinvest. Their team was always responsive, supportive and friendly throughout my investment process. Thomas from RWinvest team was especially very supportive and he made sure that I have all the necessary information at the right time. He helped me with all my queries, and helped me to complete my investment process smoothly and with peace of mind.


      Arrow left
      Arrow right