What does 2023 hold for the West Midlands property market?
Predicting the future is no easy task. Markets can be significantly impacted by factors that are currently non-existent. Take the COVID lockdowns, for example.
However, in this article, I’ve put together some thoughts on what the West Midlands property market might look like next year. Of course, I’m basing this on the assumption that things progress as expected.
Interested in moving to or within the West Midlands? Here are a few thoughts on what 2023 might have in store.
What does the West Midlands property market currently look like?
As I’m sure you’re aware, the West Midlands is one of the most diverse areas of the UK. It has the cities (Birmingham, Wolverhampton, Coventry), the quiet little towns and villages on the outskirts (Ironbridge, Bewdley, Lichfield, Burton, Hereford), and vast expanses of countryside and farmland (across Shropshire, Staffordshire, Worcestershire and Warwickshire).
Of course, I’ve picked these areas and locations as samples. There are many more in each category.
Overall, in terms of property, the West Midlands is typical of the broader country. The average house price in the county throughout 2022 was approximately £270,000. This is similar to the general 2022 average, although maybe narrowly less.
Semi-detached homes were, as always, the most popular option, with most of these valued at around the £240,000 mark.
This year, we’ve been hit in every direction. The fallout from COVID, combined with the long-term impacts of the Ukraine War, increased Government borrowing and rising energy prices, have generated massive inflation. With interest rates also rising to try and keep spiralling inflation under control, house prices have started to cool off over the past three months or so.
What factors are we expecting to affect the market next year?
The cost-of-living crisis (which I mentioned above) isn’t going to magically vanish, unfortunately. It’s here to stay, most likely throughout the entirety of next year. There’s no escaping it, and this will leave its mark (temporarily) on the housing industry.
To an extent, there’s little more any of us can do other than wait and see. How will the Government breathe new life into the economy? Will we see more trade deals? Will the war end or escalate? Is COVID (or something else) likely to return?
We simply don’t know.
It’s not all doom and gloom, though.
There’s one other thing I’d like to mention to raise your spirits: the 2022 Commonwealth Games. While the event itself generated a short-term economic boost, the public sector invested a significant amount in infrastructure in Birmingham and its surrounding areas.
This is likely to improve general health, wellbeing and quality of life outcomes in the region. It doesn’t sound like much, but these factors make an area more desirable.
What does this mean 2023 will look like for West Midlands property?
As mentioned, it’s impossible to accurately predict the West Midlands property market. There are so many factors with wildly ranging outcomes.
But there is reason for hope: the West Midlands is one of the fastest-growing economic regions in the country. At the same time, carbon emissions per capita are reducing, despite the general urban layout.
The mix of city life, business and commerce with countryside, farms and beautiful landscapes means the region offers the best of both worlds. People could live out in nature and easily commute to a large city for work. Or the opposite, of course.
This trend drove the mass exodus from London during COVID. Yes, people are starting to return to the cities, but the desirability of countryside areas near metropolitan areas will remain.
For these reasons, I’d expect the West Midlands to perform as well as, if not better, than the average across the UK market. Next year will undoubtedly be difficult for everyone, no matter what happens in the housing market. But I feel there’s reason for optimism.
How can GB Home Surveys help you?
I work as a chartered surveyor for GB Home Surveys. It’s my job to inspect a West Midlands home you’re hoping to buy and check for common (and uncommon) problems. I’ll send you everything I find (good or bad) in a PDF report.
You can then use this information to make an informed decision going forward. Many choose to renegotiate their offer based on any issues my survey uncovers, effectively asking the seller to cover repair costs. Alternatively, I might find no signs of problems at all. Occasionally, it’s even a good idea to pull out of the deal entirely.
Ultimately, this decision rests with you, but I’ll do everything I can to help. At GB Home Surveys, we offer three RICS options: a Valuation, a Level Two, and a Level Three. If you’re unsure which one is for you, check out our free Quote Calculator (there’s no need to leave any contact information).
I hope this quick summary of the West Midlands property market helps as you consider moving house. For follow-on questions or a no-obligation chat, feel free to contact me using the form below.
James Quinn, AssocRICS
