The property market can be very unpredictable. In fact, it’s one of the hardest markets for specialists to predict, as there are so many factors that can affect property prices. And if you plan on participating in the Manchester property market, it’s very important that you pay close attention to house prices and trends that can influence them before making a decision on a property.
For example, the Manchester property market is rich with opportunities. It’s really easy to find buyers in Manchester ready to purchase your property. While this is great for sellers, it can make life really hard for buyers, as high demand means higher prices.
But is it always going to stay that way?
Well, Manchester is one of the UK’s major cities, so you can expect prices to be much higher than the UK average. But when it comes to whether or not property prices will keep on climbing, it isn’t as clear as people would like it to be.
Below, we’re looking at what the Manchester property market looked like in 2022, some of the factors that will affect the market and 2023, and what experts think will happen to house prices in Manchester over the next year.
A Look At Manchester’s Property Market in 2022
Manchester’s property market in 2022 was great for investors, but difficult for buyers and renters. The average price for property in the city in 2022 was £251,690. And while Manchester’s average property sale was lower than other parts of the UK such as London, they’re still pretty high compared to other parts of the UK.
In 2022, the property market in Manchester saw an increase of 5.31% since last year. The year before that, property prices went up by 8.41% and in 2020, they went up as much as 10.83%. So, it’s fair to say that in the last few years, Manchester saw a substantial hike in prices.
Sadly, the market wasn’t any better for renters, either. The average rent in certain areas of Manchester reached £1,157 a month in 2022. This is just a bit higher than the England average, but it’s significantly higher than the UK average. So if you plan on renting in Manchester, expect to allocate a decent amount from your monthly paycheck to rent.
Factors That Will Influence the Manchester Property Market in 2023
The reason it can be really hard to predict the Manchester property market is because of all the factors that can affect it. As mentioned earlier, the property market is one of the hardest types of markets to predict. That said, you can still look at the different factors that affect prices to help you make an educated guess on what will happen to prices in the coming year.
So, let’s look at some of the key factors that may affect the Manchester property market in 2023 so you can better prepare yourself when you need to make a decision on a property.
Supply & Demand
The first factor that influences the property market is supply and demand. This can affect any market, whether it’s stocks, goods, or properties. This is why it’s really important to pay close attention to supply and demand numbers when trying to predict real estate prices. And right now, the demand for Manchester properties is really high while the supply is pretty low.
Right now, Manchester cannot provide sufficient housing for everyone who wants to move to the city. Every year, tens of thousands of new people from all over the UK and the world move to Manchester, further increasing the demand while the supply remains stagnant. And because of that, property prices in Manchester may increase as a result.
Inflation is another major factor for the hike we’ve seen in property prices across Manchester over the last several years. So, as long as inflation is on the rise, we can expect property prices to follow the same trajectory. The only time when property prices will start to drop is when inflation goes down and the market starts to stabilise. And right now, we’re not seeing any of that.
As of march 2023, inflation in the UK is at around 5.7%. These numbers are still very high, but nothing quite like what everyone experienced at the end of 2022 and the start of 2023.
Most people purchase properties in Manchester with mortgages. This setup makes housing much more affordable, especially for those that can’t afford to pay the full amount up front. That said, you always have to pay a bit more when you get a mortgage because all banks have an interest rate that you have to pay on top of the principal loan.
Governments tend to raise interest rates for housing to help stabilize the market and reduce inflation. That’s exactly what’s happening in the property market right now as banks start to raise their rates. This makes it harder for people to get affordable loans, which can impact the demand for buying properties. As a result of the lowered demand, property prices can be expected to drop.
The UK has a very active government that’s constantly passing new rules and regulations. While many of these rules seem arbitrary and may have no effect on housing prices, other rules have a direct impact on the average housing price. This goes for both national and local policies. So, it’s important to pay attention to any new policies that your government implements, especially since they can impact the average property price in your area you’re looking to buy or sell in.
Will Manchester Experience Growth in Property Prices in 2023?
According to recent data, the Manchester property market has dropped by around 5.61% for 2023 thus far. This comes as a result of the economic uncertainty that the country is going through, record-high inflation, and increasing interest rates. Due to these three factors, buying homes isn’t as lucrative as it was a few years ago, which has lowered the demand for properties and has ultimately affected the property market.
If you’re a buyer, it is a good idea to wait as property prices may drop, and so will interest rates eventually. This will open up a great slot of opportunity to buy a property at a discount and pay it off for the years to come without getting hit by high interest rates that banks are currently offering throughout the country.
With that said, if you do have a home that you want to sell and are waiting for the perfect time – now is a great time to take action. Prices are still high and experts predict that further dips in the property market are likely. So, if you want to sell your house fast in Manchester, reach out to us. We can help you sell your house quickly and get you paid as fast as within 7 days.