WSLM has advised its clients and investors that the firm expects a downturn in real estate prices in 2023, following the changing local and global market conditions. Subsequently, Soriano expects a rise in rental prices and new opportunities for investors after the market corrects itself.
LONDON, Nov. 3, 2022 /PRNewswire/ -- Walter Soriano London Management, a UK-based company specializing in quality real estate in the UK led by businessman Walter Soriano, has notified its clients and investors to expect a downturn in the UK real estate market. According to Soriano, a convergence of factors ranging from a hike in interest rates and economic slowdown to political instability.
Soriano says that the firm's predictions are in line with a growing number of experts who also forecast a drop in housing prices. This expected drop follows over 12 years of stellar market performance, during which prices recently hit historical highs. The real estate boom, fueled among other things by strong economic growth and historically low interest rates, has led many investors to jump into the market and take advantage of the steady increase.
Now, however, the tides are turning. More and more homeowners are struggling to make mortgage repayments, and with rates expected to continue to climb, repossessions will rise next year. The number of inquiries from potential homebuyers fell for a fifth consecutive month, and sales fell to their lowest level in more than 2 years. This situation will be further fueled by the turmoil in the mortgage market, the increasing level of economic uncertainty resulting from global conditions including the Russian-Ukraine war, rising inflation and the local political instability.
Soriano believes that the downturn in house sales and buy/sell transactions is paving the way for a surge in demand in the rental market, alongside a fall in landlord instructions for new lettings. "Near-term expectations point to strong growth in rental prices over the coming several months," Soriano said. The expected increase in rental rates will also help to benefit property owners when they remortgage their properties.
Soriano says that WSLM is advising clients to be prepared for various opportunities that will arise in the market, both during the downturn as well as after the correction in the market occurs. WSLM, through its expertise and vast network, is poised to take advantage of these opportunities and lead clients through these tumultuous times.
SOURCE Walter Soriano London Management