What new home buyers need to know about the housing market in 2023

The cost-of-living crisis has meant that many households delayed their new home plans last year. But as we enter 2023, mortgage fixed rates continue to drop, inflation is expected to fall, and the financial landscape seems more hopeful for prospective buyers looking to purchase new build homes.

What happened to the property market in 2022?

The housing market over the last year was something of a rollercoaster. The mini budget held in September created turmoil in the financial markets, especially as many of the original proposed cuts were later completely scrapped. This resulted in the value of the pound falling to record lows.

Mortgages were also a hot topic in the media for a while, and it was widely reported that thousands of products were being withdrawn from the market. This caused great panic for new home buyers, but the reality was that after interbank lending rates changed following the value of the pound dropping, lenders simply temporarily paused their offering to reprice before returning to market.

What do new home buyers need to know about the current state of the mortgage market?

The mortgage market is currently relatively calm and more settled, and we’re optimistic about what this means for new home buyers across the country.

Mortgage fixed rates

Mortgage fixed rates have tumbled on average by 1.75% when compared to late last year, which means if you were to take out a £200,000 5-year fixed rate mortgage at 90%, you could save thousands of pounds over the five-year term. This is good news for prospective buyers and could be helpful when it comes to the ever-increasing price of general living.

Inflation is expected to fall

In 2023, inflation is also expected to fall dramatically, even if the likelihood of it remaining above the Bank of England’s 2% target is high.

There are many reasons for this anticipated fall, including belief that the price of energy won’t continue to rise as quickly as it has recently due to the Government’s scheme that caps energy bills. Other reasons include expectations that the price of imported goods won’t rise as hastily due to less production difficulties, and a reduced demand for goods and services in the UK which means costs won’t be as high.

House builders in Derbyshire

As house builders in Derbyshire, we appreciate that buying a new home is probably the most expensive purchase most people will ever make, so it’s important to find a product and deal that works for you. Taking professional advice is a must for those looking to purchase a new home in 2023.

As a leading regional housebuilder with an exemplary reputation, we are totally committed to customer care and want this exciting time of your life to be as stress free as possible. That’s why we work with and can recommend specialist new build brokers who will present as many mortgage solutions as possible.

Many of our new homes can also include perfect home-working spaces. Click to find out more.

Homes for sale near you

We currently have a range of new homes for sale near you. This includes our housing developments and luxury new build homes in Derbyshire, new build homes in Staffordshire, new homes in Stapleford, Nottinghamshire new homes and Leicestershire new build homes.

We’re also currently running an exciting incentive – until the 31st of January 2023, we’re offering to pay £500 a month towards your mortgage for a full year*, on top of free flooring and turf* and a £1000* Love 2 Shop voucher when you reserve a specific plot at any of our developments!

We’ve helped countless buyers successfully purchase new homes and can guide you through the process. To find out more about our developments and available properties, please contact us on 01773 880550 or email sales@peverilhomes.co.uk.