Whilst there has been a dip in 2023 compared to the rest of 2022, there is no need to worry about this slowing growth being permanent.
Instead, think of it as a natural reset button for the housing market after a turbulent period in which housing will become more affordable for many.
Savills also forecast also predicts that house prices will rise overall by 6.2% by 2027, so if you see house prices fall this year, it shouldn’t necessarily be a permanent change.
In fact, for investors, this year presents the perfect chance to invest in UK property while prices are low but set to increase.
Back in 2020, house prices in the UK saw a temporarily slump during the beginning of the COVID-19 pandemic, with average prices falling by 0.6% between March and April. By the end of 2020, average UK property prices had risen to record levels and continued to rise ever since, meaning investors had made strong capital growth returns.
As well as this, the buy-to-let market has been one of the healthiest sectors in the housing market, as there were 36% more buy-to-let mortgages granted in May 2022 compared to pre-pandemic numbers.
Added to this is the previously mentioned fact that rents have gone up by 12% since the same time last year. This shows investors are collecting more rental income than ever on their properties.
This suggests that while homeowners are looking less at properties to buy, the rental market appears to still be going strong. Naturally, this is a positive sign for property investors.
Combined with the steady rise of rental fees, it is clear that the rental market is still very healthy and worth investing in, despite some concerning headlines suggesting the contrary.