What does 2023 have in store for property?

Alex Hutchings, Partner, expert in hospitality, leisure and development

‘2023 is likely to be a tale of two halves with the first six months a period of consolidation for some operators and landlords. The rise in interest rates is going to impact on refinancing and so I’d expect to see some assets come to market in the first half of the year where the yield doesn’t stack up once higher interest rates are factored in. Well-funded landlords and operators will capitalise on the softer market in the second half of the year giving them the potential to significantly expand their estate for far less than this time last year.’

Chi Collins, Partner Property Dispute Resolution

‘With a recession already upon us and likely to continue in 2023, landlords and tenants will want to know more about their rights than ever before.   People will want to break their leases, or look for ways to maximise their spaces, such as making alterations.  More economic issues will arise and those with property interests should seek legal advice early, so that problems can be avoided if possible. Our property disputes team is well versed in all matters relating to property issues, whether they are residential or commercial.   I would always advise a client to seek assistance early, because problems are best prevented or faced head on rather than trying to solve it after the event.   We at Greenwoods are experts at advising strategically aswell as taking action if necessary.’

Ann-marie Clow, Senior Associate, specialist landlord and tenant lawyer, works closely with portfolio clients.

‘Clients will be carefully considering plans for their property portfolios, looking at changes in the economic outlook and the viability of transactions.  It is great to be part of our clients’ ‘teams’ and to discuss their targets and the ways forward.  I have missed the interaction whilst I have been on maternity leave and I am looking forward to an exciting and busy 2023.’

Ellen Cole, Associate, development, finance and portfolios expertise.

‘I predominantly act in respect of commercial property portfolios for landlords. While people still enjoy flexible working there are many benefits to both staff and businesses in working from an office. Towards the end of 2022 I noticed an increase in enquiries for additional office space. I anticipate that this will increase further in 2023 as people return to the office, whether on a full-time basis or for core days in the week. Landlords should always remember that it is important to consult a solicitor before going to market to ensure the property is tenant ready and there have been no applicable changes to legislation that may affect the letting.’

Sona Vig, Associate, expert in high value portfolios and commercial and mixed-use developments.

‘I specialise in advising on commercial leases and financing, as well as acquisitions and sales. With larger finance costs leading to fewer investments in the first part of 2023, investors will need to adapt to the change in the economic climate focusing on prime income producing assets or value add opportunities, I expect an increase in transaction levels in the second half of the year.’

Myles Shearman, Solicitor, advises on all aspects of commercial property.

‘Despite the doomsayers of the commercial property market in 2023, I think we will see more moves highlighting the industry’s ability to adapt to survive in tough market conditions.  For example, I have seen reports of plans for office blocks to be converted into laboratories in Canary Wharf!  I’m looking forward to helping my clients bring their commercial property ideas to life in 2023’

Amy Lynch, Senior Paralegal, experienced in a wide range of commercial real estate transactions

‘Entering the new year, commercial property clients (both landlords and tenants) are being more thoughtful with transactions and working with their lawyers, considering their next steps over the coming months.’

Nicolle Moyo, Paralegal, supports commercial property lawyers

‘I am learning about the interesting world of commercial property and all it entails.  I expect to increase my knowledge in 2023 and look forward to working with our clients and the team.’

Will Thomas, Partner, head of residential property, acknowledged expert in high-net-worth transactions

‘This year will hopefully see the continued (gradual) thawing of the residential property market as fixed interest rate mortgage products being offered by high street lenders continue to fall, and a correction in the value of the housing market adds some additional relief.

The spectre of the continued cost of living crisis coupled with the impending (short-lived) recession will undoubtedly have a dampening effect though. The Cambridge & London residential property markets are still likely to outperform the remainder of the UK and so we expect to see continued strong demand for the best that those markets have to offer.

Our residential team, including Michael Taylor, Reda Paul  and Drianna Blanc  will continue to work hard to achieve our clients’ aims.’

Michael Taylor, Legal Executive, expert in residential block management

‘There are a lot of unknowns for the residential property market going into 2023. There’s talk of a slowdown and an expected house price drop of around 8%, but also talks of fixed interest rates slowly coming down again, and we will need to see how these factors pan out over the first half of the year. Even in turbulent times there will be plenty of deals to be had, particularly for well-funded property investors who are able to take advantage of any price drops.’