As we head into 2023 we thought it would be a good opportunity to reflect on the extremely unpredictable events of 2022, whilst also looking ahead to the local property market for 2023. Although we cannot entirely predict what might happen, there is still a good selection of housing stock available and people will always want or need to move and may find ourselves in more of a buyers’ market than sellers’ market in Tunbridge Wells.

Reflecting on 2022

2022 certainly was a year of economic and political turbulence, which in turn had a huge impact on the housing market: Russia invading Ukraine, three Prime Ministers in a year, Sterling crashing to an all-time low and inflation hitting double digits.

Mortgage rates started to rise at the beginning of the year, but it took until Liz Truss’ mini budget for buyers to really appreciate the escalating cost of debt. And of course, with the Bank of England’s resulting firm stance that rates would be raised far higher to calm the global markets, the mortgage rate environment became very volatile. Property demand fell, price growth cooled, and the Autumn market – normally a traditionally strong selling season – was totally lacklustre.

So, what is in store for the Tunbridge Wells property market in 2023?

There is no doubt that we are past the frantic activity of the last two years, and we can no longer enjoy the artificially low interest rate environment that had become the norm. Mortgage payments will be higher, if not already, when attractive fixed rates expire. 

Although it’s been predicted that house prices could fall by 20 percent, additional interest rate hikes could offset any bargain and further reduce borrowing capacity. However, people will always need to move for a variety of reasons: marriage, births, deaths, divorce, right-sizing etc. Our town has proved to be incredibly resilient in similar times, thanks to its excellent schooling, easy transport links, beautiful architecture and plethora of green spaces.

To conclude…

Although we do believe transaction numbers will be fewer, and prices more subdued, we are confident that our local housing market will not collapse - meeting mortgage commitments will just become the priority.  There is still every opportunity to find the home of your dreams, it just might mean some priorities need to be adjusted to suit the market you are currently buying or selling in.

If you are looking for professional guidance on selling, letting or buying a property, we would love to hear from you to better understand your needs.