The end of the year typically gives people the prime opportunity to reflect on the previous 365 days, with 2022 no different. However, this is also the perfect time to search ahead for what may await us in the future. Predicting insight into upcoming events can give you an advantage in the future market.
Of course, there’s no guaranteed way to predict the future exactly. Although, there are those that have a pretty good idea of what may be around the corner. Read the rest of our forecast for more!
House Prices to Drop, Availability to Rise
As mentioned in our previous article looking back at 2022, house prices have seemingly peaked in the latter stages of the year. As a result, optimists will expect the market shift to continue on a slight downward trajectory in 2023.
As reported by Rightmove, the average property was valued at £371,158 in October, a record high for the UK. However, this figure has now dropped by over £12,000 to £359,137 in December. This second consecutive price fall over a two-month period may provide hope for the housing market and, subsequently, the insurance market as we prepare for 2023.
According to Zoopla via The Express, house availability is ascending compared to 2021, with a 40% increase. However, this is still 20% lower than pre-pandemic levels. Nonetheless, this positive trend will carry over into the early stages of 2023 for those looking to buy property. Because of this, sellers have been willing to sell for a discount to facilitate a completed sale.
Buy-to-Let Market Expansion Imminent
As anyone in the insurance industry will know all too well, the buy-to-let market has experienced a lot of turbulence over the last year, with interest rates and living costs skyrocketing. However, there might be a landlord-shaped opportunity awaiting in the next calendar year. Those with loans and mortgages will likely be feeling the effects of the current climate.
Stated by Rightmove, data suggests that buyers are waiting for the opportune moment to invest in the housing market in 2023. Although house prices won’t be affected instantly in January, February shows signs of a market rebound with regards to prices. Experts are hoping to see a more even balance between supply and demand, unlike 2022 with demand outweighing supply.
Interest Rates Continue to Grow
As per BBC News, interest rates have expanded to the highest point in 14 years. The Bank of England has increased rates to 3.5%, a hike unseen since the 2000s. This has raised concerns throughout the insurance and mortgage market.
Inflation has accelerated at its fastest rate for 40 years as the cost of living continues to climb to new heights. Because of this, the money paid in mortgage premiums is expected to stay at increased altitudes, forcing people to lend instead of spending more – saving money. Experts are hopeful this will bring down and suppress the rate of inflation.
You can read more here for more information on how the rising rates affect you and your clients.
Building on our Success!
This year, we were proud to be announced as GI / Protection Provider of the Year by Mortgage Introducer – a title we are thrilled to be given. Following this, we will emphasise our customer promises to solidify our status as GI Provider of the Year by continuing to create a focal point around customer service and our advancements as a company.
With fresh additions to our team throughout 2022, we want to provide you with support for your services. We offer free learning and expert perspectives from staff with years of experience throughout the insurance industry. Our technology will also continue evolving, with new systems being implemented in the coming year.
Investment in Technology
As we look to continue meeting our customers’ needs, we have committed increasing time and effort into our systems to ensure that the policy-finding journey is smooth and hassle-free for advisers and their clients. Developed internally and moulded with your feedback, we will keep striving to ensure general insurance is as simple as ever.
We are excited to show you the new technology we have coming throughout 2023, projects that we have been investing time and effort into to make your experience easier. In addition, our IT and development specialists have been working hard to ensure that our systems are adapted, facilitating advisers and their clients to find insurance policies as efficiently as possible.
As many advisers will know, a business is nothing without its clients. We hope to see you at events and roadshows throughout the New Year – be sure to drop by and chat with our team! Our Sales department, along with our Learning and Development team, will be present to represent the company. Additionally, you can call our broker support agents through the contact details on our website.
Facilitating Your Development
Throughout 2022, we’ve seen almost 1,400 modules completed through our LearningLab. These micro-courses are perfect for accumulating crucial CPD minutes and expanding your knowledge. So, as we enter 2023, we want you to know that your development is an integral part of what we do, and we will continue to help you understand the intricacies of insurance.
Want to be a part of the Source Insurance journey? Start a quote today! We have over 25 years of experience in the insurance industry, helping advisers map their clients’ insurance journeys. Why wait? The perfect policy is right around the corner! https://bit.ly/3W4mgK8
Rightmove – https://bit.ly/3hiN4Hb
BBC News – https://www.bbc.co.uk/news/business-63977963
BBC News – https://www.bbc.co.uk/news/business-57764601
Zoopla via The Express – https://bit.ly/3Ymhvgp