2023 – Read our predictions for what is ahead for Oxfordshire’s property market in the new year!
The UK has experienced significant economic change through 2022 with COVID-19, Russia’s invasion of Ukraine and supply chain bottlenecks all contributing to rising inflation rates.
This has prompted the Bank of England to increase its base rate from 0.1% to 3% within the last year, making borrowing money cheap historically but at its highest level since November 2008.
Despite these unforeseen challenges, Oxfordshire’s robust property market continues to grow with Plumpot reporting the county’s average home increased in value by £4,600 in 2022.
What we read in the press might paint a picture of doom and gloom, but there is good reason 2023 can be a year of resilience and opportunity locally.
Our Oxfordshire property experts explain why this is the case in our latest blog.
Experts forecast a ‘good’ year
Since the Government introduced its Stamp Duty holiday in June 2020, demand for properties in Oxfordshire has far exceeded supply.
The average Oxfordshire home cost £390,000 at the beginning of the pandemic. Today, that figure is over £450,000.
From our regular conversations with the county’s estate agents, many forecast 2023 to be a genuinely good year where properties can still be sold despite UK-wide uncertainty.
Historically, trends we see across the UK property market are rarely replicated locally.
This is because Oxfordshire will forever remain an attractive county among buyers for several key reasons including:
Strong transport links
A staggering 14 train stations in Oxfordshire serve central London daily within an hour. By car, Birmingham, Bristol, Southampton and London are a 90-minute drive away and in the same time you can reach seven international airports.
In addition to the world-famous Oxford University, our county is also home to Oxford Brookes plus many great private and state secondary schools and colleges.
City, towns and countryside
From Oxford’s cobbled streets to the rolling hills of the North Wessex Downs and quaint Cotswold villages, Oxfordshire has a location to suit those searching for a city lifestyle with the countryside on your doorstep.
Oxfordshire is the hub of the UK’s knowledge economy by providing the technology, development and expertise which can define our economic and commercial future.
Interest rates to level off
When the Bank of England hiked interest rates from 0.75% to 2.25% between spring and autumn, some forecasters predicted rates could reach a peak of 6% by the summer.
However, it’s looking increasingly unlikely rates will reach such levels, with estate agents Savills predicting the base rate will rise to 4% in early 2023 and remain there until summer 2024 before dropping.
This is good news for buyers and will increase their confidence in the market following a bleak initial outlook.
You can read more about Savills’ residential market forecast for the next four years here.
Economic volatility breeds opportunity.
It allows cash buyers to take advantage of a general decrease in confidence and those needing to sell may have to adjust expectations on price.
Many buyers would have sold their homes during the property market’s boom period and have cash ready to go. As mortgage rates are forecast to be increasingly affordable – unlike initial predictions – this could prompt a rise in the number of cash buyers.
This does not mean we would be totally surprised if house prices do fall slightly in some parts of Oxfordshire. It’s possible the volume of property sales in the county will dip, but we believe demand for space regionally will remain strong.
Buying in Oxfordshire in 2023
If you’re considering a move to Oxfordshire next year and would like local, expert, help in finding your dream home and paying the right price, you can contact our friendly team today for more information!
- Call – 01865 553956
- Email – email@example.com
We hope to hear from you soon!