The 2022 property market was chaotic, yet we had some accurate predictions. The continuous political and economic upheavals had an effect on the UK and overseas property investors. Who could predict a 45-day prime minister causing a plummet in the pound?
The 2023 property market’s exact trajectory remains uncertain. Dan, Advantage’s Senior Investment Consultant, leverages experience and data to offer insights into 2023 property market trends. These expert insights can help you to continue to make wise investment decisions next year!
Short-term lets and Serviced Accommodation Investments To Increase In Popularity In 2023
Daniel Myatt –” With the rise of interest rates outweighing rental income, Assured Short-Hold tenancy investors are finding it an uphill battle to make any real profit. With the prediction of another recession approaching, the domestic tourism industry will only benefit, with people putting overseas holidays aside, the short UK city breaks will become a lot more desirable, allowing investors to make hay while the sun shines. Investors are seeing huge profits from becoming hosts on the likes of Airbnb, using these platforms to appeal to a wider audience. Of course, this will come with more void periods and less certainty.
Given market uncertainty regarding interest rates, it’s crucial to select properties carefully in this new investment approach. The most important factor with this is location, location, location!
With the 90-day rule in London, this means you can only achieve a maximum occupancy rate of 24.65%. Our investors excel in cities like York (85% occupancy), Liverpool (73%+), and Manchester’s growing Salford Quays, up from 61% in 2023. These are all the current and up-and-coming UK hot spots for short-term rentals / serviced accommodation.
Cash Investments
Amid uncertainty, security matters, as not all investors seek property mortgages; stability is crucial with substantial capital at stake. Year on year our Landal holiday lodges have satisfied investors with fantastic huge guaranteed rental income. A passive rental guarantee investment assures income with peace of mind, requiring minimal involvement. The companies involved are constantly growing and looking to dominate the market in their field boding well for future investments.
Most Up and Coming City in the 2023 Property Market
In my view, next year presents the prime opportunity for investors to capitalize on Liverpool’s prices. Having lived here for two years, I’ve witnessed substantial city growth. With COVID restrictions easing and the construction industry accelerating, I anticipate significant advancement in the Liverpool Waters Project. According to the Land Registry, Liverpool house prices were up 13.8% compared to 12.8% recorded nationally. In the past five years, prices in the city have soared by 46%.
Investing is always about timing, so investors who have bought in Liverpool up to now have built up huge equity. Post-2023, buying here remains advantageous, with prices lower than Manchester, Birmingham, and notably London. Don’t delay investing; adding Liverpool early enhances future profitability.
Should You Invest in the 2023 Property Market
Research is essential to success and generating profitable returns- as any successful investor is aware. Investing is a long-term process, and although 2022 has shown continuous instability, previous recessions have demonstrated the long-term resilience of the UK. Riding economic changes yields strong returns in short and long-term investments, even during recessions. The unpredictable economy’s effect on the 2023 property market doesn’t mandate a complete investment strategy overhaul. However, considering adjustments to leverage next year’s trends and opportunities can ensure profitable investment in the 2023 property market.
Next year, staycations are poised for a resurgence in popularity due to the pandemic’s impact and the increasing cost of living in 2022. As a result, the UK holiday market is projected to reach a record high of £275 billion by 2025. Investing in a UK short-term let in 2023 offers prime potential for significant capital growth.
Furthermore, as Dan noted, cash investments will gain traction for countering the 2022 observed mortgage interest rate increases. Not to mention, with rising interest rates comes an increasing demand for renters choosing not to buy in 2023. Zoopla: 46% rise in demand, 38% supply drop in the UK predicts higher rent prices next year. The 2023 property market will allow investors to capitalise on this rising rental demand.
To excel in 2023, investors should define goals, devise a research-based roadmap, and align with market trends.
For help with your 2023 investment plan, book a free call with Dan or an Advantage Investment expert.
Make investing straightforward for you in 2023 and set yourself up for success.
Please email Daniel@advantageinvestment.co.uk or call 0151 433 9300 to book in your call.
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