14 Mar Is now a good time to buy a house?
With everything that is going on the world today, and on our own shores, you might be wondering if now is actually a good time to buy or sell a house? Is it better to wait or should you act now? We explore why now is the best time to get moving if it’s on your agenda this year.
The pandemic has sparked a dramatic rise in house prices across the country, with properties achieving 10.4% more in December 2021 than they did the previous year. * This is mostly due to a smaller supply of desirable homes meeting greater demand, changing lifestyle trends, lower mortgage rates, and the recent stamp duty holiday. Prices seem only to be rising upwards with the price of property coming to market rising by 2.3% in February (+£7,785) to a record of £348,804, the biggest monthly jump in pounds recorded by Rightmove in more than twenty years.
While buying is undoubtedly a more expensive enterprise than in pre-COVID times, mortgage lenders are still offering some good deals despite everything that is going on globally and closer to home with the increased cost of living – and there are some really great deals for those with a larger deposit. Interest rates, despite currently on the rise, are still competitive if your fixed rate deal is coming to an end soon, be sure to buy now (or remortgage if you’re not currently looking to buy or sell) to make savings or lock in a similar rate.
The Bank of England is also considering loosening some affordability criteria in the coming months, helping first-time buyers borrow more. While this could increase your buying power, it might stimulate prices too.
If you’re thinking about moving soon but only have a 5% deposit available, you could take advantage of the Government’s mortgage guarantee scheme, which runs until the end of 2022. Nationwide has recently estimated that a 10% deposit is currently over half of a first-time buyer’s annual income, so the scheme is great news for those struggling to get on the property ladder.
So far, sales have remained strong despite increasing economic pressures. The good news is that spring brings more homes to the market as people look to wrap up a sale before the summer holidays. Therefore, if you’re looking to buy within the next six months, now might be the perfect time to take the plunge.
Ready to discuss your options? Contact us today.