Gareth Davies, Managing Director at Grosvenor
Now that 2022 has drawn to a close, all eyes and ears are on what lies ahead for the Surrey property market in 2023. The good news is that after a turbulent few months, there are now a number of reasons to be cheerful, according to Gareth Davies, Managing Director at Grosvenor. He shares a few of them here.
If, like me, you’ve compiled a list of New Year’s resolutions and goals, then you probably have the next 12 months mapped out. Well, at least in theory. However, the property market is a little less easy to plan for, particularly on the back of what was very changeable economic weather towards the latter part of 2022.
A number of property experts are predicting 10 per cent growth in 2023, whilst others are predicting a 10 per cent fall. So, who’s right? The honest answer is that nobody knows for certain, particularly given the number of variables involved. However, as a Surrey estate agent, my view is that it’s not what we don’t know that matters, but what we do.
And when it comes to the Surrey property market, there is a lot that we do know and therefore a number of reasons to be thankful. Here are four of them.
1. Demand for Surrey property is high
The mixture of low supply and pent-up demand in Surrey means that, in the main, house prices will remain stable over the next six months. Add to that the fact that those who were hoping to move towards the end of 2022 but opted for a wait and see approach are beginning to run out of patience. People want and need to move, so I predict a flurry of activity as we move towards spring and the bottleneck from the last quarter of 2022 eases.
2. Balance is being restored
The end of last year saw mortgage rates hit 6.5 per cent – the highest that they’ve been since before the financial crash of 2008. This made many people think twice about moving. For some, it made moving cost prohibitive. Thankfully, this has settled and mortgages are becoming more affordable again. This, too, will help the market gain momentum as we head into warmer (and hopefully drier) months.
3. A correction, not a collapse
For a long time, house prices – particularly those in the Elmbridge area – have continued to increase year on year. Whilst this is generally a positive for homeowners, there is a balance to be had between increasing property wealth and making house purchases affordable for those not already on the ladder. 2023 will be the year in which this balance is redressed. Will the housing market collapse? Absolutely not, but it’s unlikely to continue to grow at the pace we’ve seen over the last three years.
4. Elmbridge is top of the class
With a large collection of highly regarded private schools in and around Elmbridge, especially within the Cobham, Oxshott and Esher areas, there is always a high demand for properties from those looking to move into the area. Whilst other areas of the UK are arguably more exposed to economic uncertainty, properties in Cobham, Claygate and Hinchley Wood remain relatively sheltered. So, despite what’s going on nationally in 2023, properties in our area will continue to attract great buyers, many of whom will be moving from London and overseas.
We know that many people decided to sit and wait in the last few months of 2022, and that’s entirely understandable; it was an uncertain time for those looking to buy and sell. However, those who continue to sit and wait may miss their opportunity to ensure their property stands out as the market begins to move and we see the inevitable influx of properties coming to market over the coming weeks and months.
If you’re considering a New Year move and want to take advantage of the first few weeks of 2023, get in touch to arrange a property valuation. Contact your nearest Grosvenor office on any of the numbers below.