Ahead of 2023, our clients have shared their thoughts on how the year is likely to look in the world of property. From interior design trends, to property market insight, see our clients’ expert insight below.
In 2023, Cash is King
Camilla Dell, Managing Partner at Black Brick commented: “Some of our clients have recently decided to buy with cash rather than take finance due to a number of reasons such as, the cost of finance has gone up, meaning that for many high net worth buyers, borrowing no longer makes sense. Borrowing takes time and slows a transaction down considerably as the lender will need to do a bank valuation, therefore buying in cash is usually much quicker and for many sellers, when presented with an offer from a cash buyer versus a buyer that requires finance, they will usually almost always opt to sell to the cash buyer, even if the cash buyer’s offer is not as high. This due to cash buyers being able to transact faster and deals are less likely to fall through due to potential down valuation from a lender. The old saying “cash is king” definitely rings true if you are trying to buy well/get a good deal at the moment.
“Buying with cash doesn’t give you any protection from future inheritance tax. One of the main reasons high net worth’s decide to borrow is to protect the asset from future inheritance tax which is only calculated on the equity part.”
Caspar Harvard Walls, Partner at Black Brick commented: “The ultra low interest environment over the last few years has meant that even when a buyer could have bought with 100% cash it seemed foolish not to take advantage of the ultra low rates, leaving cash available to invest into other things such as the stock market or a personal business, for example.
“The changing situation on interest rates has made it far less attractive to take mortgage debt for those who do not need it and so we are seeing a significant rise in the number of buyers who are opting to pay cash for a property. Sellers are all too aware that those who are taking a mortgage might be in the precarious position that should they receive a down valuation as a result of the bank survey and as such, they may not be able to afford the property unless the price can be renegotiated. Cash is king again!”
The design trends we can expect in 2023 from Manuela Hamilford, founder of Hamilford Design
An Organic and Natural Feel
Manuela Hamilford, Founder and Creative Director of Hamilford Design comments: “Design will become a lot more simplified in 2023, with a keen focus on the organic side of interiors. The statement home is not critical anymore, but homes must be liveable and comfortable for residents. This is also brought on in part by the fact we are certainly more environmentally conscious, as materials chosen for designs are often all natural and sustainable, such as cork, wood, jute and stone.
“We’re also seeing this organic and natural element reflect across many chosen colour schemes. Green is always a popular choice, as it brings the outside in and is extremely versatile. However, we’re also seeing a rise in the popularity of pale mauve – it’s an earthy tone with a relaxing and comfortable feel.”
Scandi Décor
Manuela Hamilford, continues: “I’m predicting that the trend of Scandinavian design will still remain extremely popular throughout the UK in 2023. Its uncomplicated and minimalist but warming and comfortable elements will still be attractive to many homeowners as the style invites peace to the home, which is appealing to many after the last three years.”
Statement Walls
Manuela Hamilford explains: “Gone are the days of statement pieces – it’s now all about statement walls! It’s interesting to see so many paint companies release such impressive but calming tones for the year ahead, which I’m sure many homeowners will take advantage of in 2023. I expect that autumn tones will be popular, such as plum and pale green hues, and will perfectly complement simple, classic and fuss-free furnishings to increase a sense of ease and comfort across the home.”
Extending and Refurbishing
Manuela Hamilford: “As the last year has been unprecedented across the UK property market, we’re finding that many of our clients are staying in their current houses, rather than selling up and taking on new projects. As a result, I predict that we’ll see many refurbishment and extension projects, as many people are choosing to stay in their comfort zone and improve the spaces where they have already settled.”
Prime London is set to thrive
Samuel Richardson, Head of Sales at Carter Jonas Marylebone office commented: “We are anticipating that 2023 will be a very good year for the Prime London property market, with the majority of buyers coming from overseas as they take advantage of the weak pound. 80% of those that purchased in PCL in the last quarter of 2022 at our Marylebone office have been from overseas. 50% are Dollar buyers - the majority of which have been American, followed by those from the Middle East and Singapore. Interestingly, 90% of American buyers were Californian.
“If the dollar remains strong, I believe that Prime Central London will outperform the rest of London next year. The reason for this is due to high demand and a soaring rental market which will appeal to investors who want to take advantage of the good exchange rates. What’s more, rising mortgage interest rates will not affect the PCL market as all our recent buyers have been cash purchasers, they do not need funding to buy which also speeds up the purchase process.
“Buyer demographics are varied from those buying pied a terre and short term investments to properties for children to live in whilst studying in London or families looking for a more permanent abode. They are spending anywhere from £800,00 to upwards of £70 million. Whilst outside space is less important post covid, it is still a desirable factor along with a space to work from home, although most are doing so only once a week now. People are very much back in the office.”