Economy (GDP)
Inflation (CPI)
Price growth (RPI)
Earnings growth
Official bank rate
Unemployment
Household income growth
Swap rate1
housing market thrives on stability and
certainty, and such a start to 2023 is
to be welcomed.
Buyer optimism
First-time buyers are benefitting from
stamp duty changes. One in every two
apartments now sells with a nil rate, up
from just one in four before the change in
September. Over 1,000 first-time buyers
have benefitted from the Government's
Economic optimism
The UK economy has started 2023 more
calmly than predicted. The jobs market
remains robust, and any recession is
expected to be shallower and shorter than
previously thought. Inflation has peaked
and forecasts for interest rates have pared
back. Mortgage rates are expected to
settle at 4%, an improvement on the 6%
forecast. Affordability and cost-of-living
concerns will remain pertinent, but the
Mortgage Guarantee Scheme. If take-up
continues at a similar rate, its one-year
extension could support over 650 more.
Those who are looking to upgrade will do
well in a softening market. The discount on
the house being sold will usually be less in
monetary terms than on the one being
purchased. Also, the reliance on the mortgage
market is less critical in London than in many
areas; just 28% of homes are owned or
part-owned with a mortgage, compared to
more than one in three in England and Wales.
LONDON: CITY
OF OPPORTUNITYThe London Report 2023 | London: City of opportunity 2
London remains a city of diverse property opportunities, with an immense
range of property types and price points. Its standing as one of the world's
leading cities in which to live, study and invest provides insulation from
domestic trends. A one-size-fits-all approach to the London market in
current conditions downplays the intricacies and nuances of this great city.
Economy proving its resilience and outlook improving.
ECONOMIC OUTLOOK FOR 2023
1 IN 6
HOMES IN
LONDON
PURCHASED
WITH CASH
2022
NOVEMBER 2022 FEBRUARY 2023
Dataloft, UK HPI
Dataloft, OBR, HM Treasury, ukinvesting.com, 1November high versus February low
Dataloft, Census 2021
-1.4%
3.8%
6.3%
4.2%
5.0%
4.6%
-3.4%
4.2%
-0.7%
4.2%
5.8%
4.7%
4.3%
4.5%
-0.9%
3.5%