The highest rate of change is expected in London, where Finanze predicts prices to drop by 15.40% for the year.
This outcome may result from a drop in mortgage approvals and sellers being forced to settle below their asking prices in 2023, the company said.
Finanze's inaugural annual research report includes the company's reflections on 2022 and market forecasts for the year ahead.
Other predictions made by in the report include an anticipated rise in the base rate up to 5% in 2023 until inflation is firmly under control.
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The company said it predicts the inflation rate will settle at a ‘new normal’ of 3% in late 2024.
Rent rates, meanwhile, are forecasted to jump 12.91% across the UK due to an ongoing rise in demand.
In terms of commercial property, the report suggests that rising cost of inputs and debt will lead to more business insolvencies and cost reductions, thus negatively impacting the market.
Joshua Ellard, head of specialist finance and research at Finanze (pictured above), remarked: "This time last year, many would have been expecting a period of recovery in which the economy could thrive and recover from the global pandemic.
“In reality, 2022 has thrown everything at us, from both economic and political perspectives.”
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