Will There Be A Property Crash In London in 2023?
So, will there be a property crash in London this month (February 2023!) or in the near future?
I very much doubt it…
Why’s that, I hear you ask?
Looking back, the last period where we saw a huge reduction in property prices in London was between 2007 and 2009 - September 2007 and March 2009 - which was when the latest global financial crisis was.
The media have been reporting that there will be another financial crash, soon.
Data from Rightmove suggests otherwise! In their January 2023 House Price index, Rightmove report that:
Property prices have fallen for 2 months.
However, seller asking prices have risen by 0.9% this month - which is the largest increase at this time of year since 2020.
The number of prospective buyers contacting agents is up by 55% compared with the two weeks before Christmas - which is the largest New Year bounce since 2016.
“However, seller asking prices have risen by 0.9% this month - which is the largest increase at this time of year since 2020.”
The current cost of living crisis is awful for many, but it’s not even close to the 2007–2008 global financial crisis…
The Bank of England increased it’s base rate by 0.5 % last week - and has shot up by 0.1 % to a huge 4 % (‘huge’ compared to recent months and years!) in just over 12 months… Reports suggest that there may well be an increase to a base rate of 4.5 %.
Having said that, there are a few banks that are currently (February 9th 2023!) offering fixed rate mortgages below 4 %, which is very positive…
I look forward to seeing what happens with regards to mortgage rates and (of course!) what happens to property prices in various areas of London over the coming weeks and months…