In a recent speech to parliament, Home Secretary Suella
Braverman vowed to crack down on illegal immigration.
People who came to the UK illegally could “expect to be
detained and swiftly returned” to a safe country, she announced to MPs hours
after four migrants drowned when their boat got into trouble in the English
Channel.
The latest “crackdown” has not been helped by a strike by
one thousand UK Border officers and news that the number of migrants arriving
in Britain on small boats will top 45,000 by the year end – 60% up on 2021.
With hotel bills for housing asylum seekers running at £7
million a day and her party lagging behind labour in the polls, the Home
Secretary is under pressure to solve the migrant crisis.
Net migration figures now exceed half a million prompting
the Home Secretary to rethink how the Immigration Rules could be applied to make
it harder to bring family members, students and workers to come to the UK. Details
of tougher measures are expected to be announced in the near future.
Millions of students are taking advantage on online
degree courses saving thousands of dollars on fees, accommodation – with no
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UK Property Predictions For 2023 – Where Is The Housing
And Rental Market Going?
With some forecasters warning of somewhere between a
depression and Armageddon, here are my thoughts on the UK housing market.
The UK housing market will shrink - but not necessarily
crash - next year, industry experts agree, as the government fights recession
and higher mortgage rates.
House prices have been dropping month-on-month with average
prices down 2.3% in November from October – the most since the start of
the financial crash in 2008 – according to Halifax.
Watch video on my YouTube channel - https://youtu.be/ekDrJUZ6pUg
Price growth will decline in 2023 as soaring inflation hits
the economy and forces interest rates up.
As the downturn intensifies the Bank of England is expected
to raise interest rates into 2023 from 3.5% now to 4.75%, but there are signs
that the rate of inflation is slowing.
Higher interest rates will hit buy-to-let landlords and
investors, as deals fail to stack up.
Move from cities to the country is slowing, as more people
move back to the office.
Property experts forecast property price declines of 5% -
12% next year, although some warn of a crash by 15% to 20%.
Mortgage rates have since fallen back since the disastrous
mini-budget in September to an average five-year fix at 5.6% according to
Moneyfacts – still far higher than a year ago.
UK Finance forecast gross mortgage lending for house
purchases to decline to £131bn in 2023 from £171bn in 2022 and a peak of £189bn
in 2021.
Leading UK lenders have met with government officials to
discuss measures to ease the burden on around 90,000 people in mortgage
arrears, the FT reports. Property sales are set to drop to 1.01m next year
from 1.27m in 2022.
Savills warns of a severe drop in transactions, to 870,000,
and a 10% fall in house prices in 2023. Estate agents Jones Lang LaSalle
forecasts a 6% drop in house prices next year. Both firms expect a 1% price
growth in 2024, as interest rates fall back and inflation cools.
The Bank of England said 4m households face higher mortgage
payments next year.
Typical payments could rise by £250 to £1,000 a month
causing severe financial difficulties for 220,000 households.
Capital Economics’ central forecast is for house prices to
fall by 12% by the end of 2023, but Andrew Wishart, senior economist at the
consultancy, said in a worst-case scenario prices could plummet by up to 20%.
Rent prices meanwhile have surged to record levels due to a
shortage of properties to rent and growing demand, as well as a slowing
buy-to-let market and many first-time buyers are opting to rent in the hope of
lower mortgage rates in 2023/24. Some 85,000
landlords have quit the buy-to-let market in the last 5 years.
See my Money Tips Podcast video - https://youtu.be/NME3nEu8dAQ
UK private rents jumped by 4% in November, the highest since
records began in 2016, official figures showed.
Globally, many markets seem overheated and, in a bubble – Toronto,
Sydney and Auckland for instance.
China’s property market boom appears to be over with a 20%
decline.
As with all economic forecasts, much depends on government
action and the prevailing winds of the economy, but more rests on your action
in your U’conomy!
Your goals for 2023
·
How was 2022 for you?
·
Did you achieve your goals?
·
What are your financial goals for 2023 and how
do you plan to achieve them?
I wish you a happy and successful new year!
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