Harrogate housing market stays "healthy" despite rising tensions across the UK

In a recent study, over 600 UK estate agents reported what they are seeing on the ground from both buyers and sellers, and how they are proceeding with market uncertainty at a high.

The results show that 55 per cent of agents are worried about the outlook for the UK property market, with just 11 per cent stating they felt confident about the months ahead.

Around 26 per cent believe that we are set to see a market crash in coming months, with 37 per cent predicting a downward turn in house prices at the very least. Another 27 per cent anticipate house prices will flatline.

Almost a third said they had seen a slight decline in business from home sellers, with 10 per cent seeing a bigger reduction in seller activity. However, almost a quarter said business had been on the up.

Another 27 per cent reported buyer demand as robust, while 42 per cent have seen levels start to decline, with 43 per cent seeing buyers offering less, compared to the pandemic house price highs of the last two years.

As a result, 41 per cent are advising sellers to adjust asking price expectations in line with the lower level of homebuyer purchasing power being experienced.

In terms of time, 33 per cent feel the market is in for a long period of adjustment, lasting beyond next year, while 41 per cent foresee a mid-term correction lasting throughout next year, and 26 per cent are hopeful of a return to ‘business as usual’ by the 2023.

Chris Hodgkinson, managing director of House Buyer Bureau, who conducted the survey, said: “The market is holding firm for the time being, but the wider expectation among those on the ground is that a correction is on the way.

“We’re already starting to see early signs of this with a good proportion of agents noticing a decline in both buyer and seller activity, as well as a reduction in the pandemic high house prices that buyers are willing to pay.

“With many also fearing a mid to long-term period of muted market activity, it certainly looks as though the sector is in for a tougher year in 2023.”

Ed Stoyle, head of residential sales at Savills in York, said: “Whilst there is a fair degree of uncertainly at the moment, there is still a healthy appetite among buyers and sellers throughout Harrogate and North Yorkshire.

"What has been noticed is that the increase in energy bills has certainly made older homeowners even more focused on moving to a smaller property.

"With the costs of running a home increasing so rapidly, the financial benefits of downsizing are likely to come to the fore over the next 12 to 18 months and, for some, this will outweigh the feared upheaval of a house move.

"While those home movers most reliant on borrowing are starting to reduce their budgets in the face of rising interest rates and the increased cost of living, there is still an underlying demand to move, albeit not as intense as it has been in recent times.”