Executive summary
- Annual house price growth slows but the worst of the month-on-month price falls are now behind us
- Demand continues to recover as the number of new sales grows
- First-time buyers (FTBs) were the largest buyer group in 2022 and look set to be a strong source of new sales again in 2023
- 3-bed homes remain the most in-demand property for FTBs (40%) but there is a clear shift in FTB demand towards 2-bed flats
- Income to buy a 3-bed FTB home has increased by £7,350 since 2020 but this varies by geography
- The housing market is more balanced than for some years and sales could exceed 1m over 2023 if current trends continue.
