The number of homes on the market in the UK has increased recently. Stocks are rebuilding because they are no longer selling like hotcakes as they were during the pandemic.

Buyers now have more choices when it comes to finding a new home. In the average estate agent office, 23 homes are for sale, the highest level since January 2021. The number of homes on the books of agents has not yet recovered to pre-pandemic levels. But the growth in homes available for sale is being seen across all areas of the UK.

Home availability reduces upward price pressure

The move to a more balanced housing market involves rebuilding sales inventory, which boosts buyer choice. Given the current hit to buying power caused by higher mortgage rates, it’s important that sellers price their homes accordingly. The availability of more homes for sale will reduce the upward pressure on house prices and restore a more normalised housing market.

In 2023, house prices are not expected to fall

Our expectation is that we won’t get an over-supply of homes for sale in 2023.

It is expected that some element of scarcity will remain a part of the market next year, meaning that house prices will not fall dramatically. We believe that moving home will continue to change as the drivers and motivations change.

In the coming year, people will continue to look for new homes as a result of pandemic-related factors, including greater labour market flexibility, an aging population and the need for more space. The rising cost of living has compounded some of these factors.

Renters are particularly affected by high levels of rental inflation. In 2023, this will support first-time buyer demand despite the oncoming headwinds and the impact higher mortgage rates will have on buying power.