If you have glanced at a newspaper or switched on the news over recent times, you will be forgiven for thinking that the housing market in the UK has taken a catastrophic downturn! Constant talk of recession, soaring energy prices, inflation and interest rates all point to the end of the world!
With all this negativity, people are starting to ask whether now is actually a good time to buy a new property or are they better to wait until things settle down. We hope this blog will explore some of the facts about the current market and help you make the decision as to whether to make that move now.
Will There be A House Price Crash?
Many potential buyers are waiting for the market to drop before they make their big purchase. Although this is understandable, think about that logically: Those same buyers have been saying this for years now: Brexit, Covid and beyond, the “glass half empty” among us have been predicting a house price crash since about 2016 and so far those buyers have put their lives on hold needlessly as no “crash” has ever happened.
If you look back over history, the last few recessions have seen house prices drop, but within just two or three years they have risen again to more than before the start of that recession. The lesson this has taught us is that if you are looking for a home and intend to live their for more than a couple of years then what house prices do in the next year or two really will have no consequence to your longer term plans, so our genuine advice is if you need to move and can afford to do so, then go ahead and do it.
Are Mortgages More Difficult To Obtain?
With the cost of living rising, it is understandable that people are concerned about how easy it may be to get the new mortgage buyers will require and the costs involved. Our advice is to make sure you talk to an expert mortgage broker who has whole of market accessibility. They will be able to scan the entire market for you and advise on how much you can borrow and at what cost. We would recommend you do this BEFORE you start actively searching for property so you know exactly how much you can buy for and when you come to make an offer your seller will have total confidence in you as a buyer because your finances are ready to go.
Whether or not now is the right time to buy is very much a personal choice. Make sure that you don’t spend every penny you have on a deposit, and don’t get a mortgage with high monthly repayments that you will struggle to afford.
Our team have your best interests at heart, so we’ll help you to find a property within your budget. Why not get in touch for some free, no obligation advice
Until next time,