What to expect in the housing market Summer 2023

According to recent data from HMRC, UK property sales fell by 19% in March, which reflects the same trend as last year with sales also down by 19% in March 2022. HMRC also stated that the total transactions this year have been “significantly lower” than last year, but acknowledged that this activity was boosted by pent-up demand post COVID and the stamp duty holiday.

However, despite the annual fall, there is hope in the market. With a month-on-month uptick of 1%, which broke the trend of declines seen in previous months (4% monthly decline in February and 3% dip between December and January).

The head of lender relationships at Legal and General Mortgage Club, Danny Belton, stated it was “positive to see an uptick in transactions from February to March kickstarting a strong spring selling season”.

While it's impossible to predict exactly how the market will evolve in the summer of 2023, there are indications that it may steadily strengthen. According to a recent report by Zoopla, the UK property market is currently experiencing its strongest sales market in a decade. This is driven by a combination of factors, including low mortgage rates and new government incentives.

In terms of the rental market, there are indications that demand will remain strong in the summer of 2023, potentially causing issues with lack of available housing. According to a recent report by HomeLet, the average rent in the UK increased by 1.3% in February 2021 compared to the same month last year, suggesting that rental prices will continue to rise in the coming months.