Whether you’re a first–time buyer looking to purchase your very first property or you’re a home mover waiting to exchange contracts, given the current political climate and continuing Brexit uncertainty, it’s perfectly reasonable to question whether now is a good time to buy a property.
It is accepted opinion that the UK’s exit from the EU will have a negative impact on house prices and that there is the potential for the market to suffer significantly in the event of a no-deal Brexit. Slow-down in the market has not however been as severe as experts originally thought; although many predicted house prices would not change between April 2018 and March 2019, and some warned of a possible fall, prices instead increased by an average of 1.4%, according to the UK House Price Index. This would seem to indicate that the housing market is in significantly better shape than many expected during such turbulent times.
Last year, buyers in many areas faced significant obstacles to home ownership leading to potential first-time buyers being dubbed “generation rent”. There are however more options than ever before for first-time buyers including help-to-buy schemes, shared ownership and 95% mortgages, requiring a deposit of only 5%. These types of mortgages, combined with historically low interest rates, mean that there may never be a better time for some buyers to take out a first mortgage.
The same opportunities can be seen for those wanting to up-size on the market, especially if you’re planning on owning that property for a considerable amount of time. Whilst you may not receive the optimum price for your property in the current climate, you are more than likely to receive a greater reduction on the house you are buying. If you are planning on staying there for a long time then any impact that Brexit has on house prices could pale into insignificance against the backdrop of a home that you’ll live in for decades to come, something all potential buyers should keep in mind.
Despite the housing market operating at a slower pace than previously, this does mean that any properties which have been placed on the market will likely have motivated sellers behind them. This factor could work in your favour when it comes to negotiating your onward purchase. If you are buying or selling your home through Healys LLP then our experienced team will be able to navigate you through all of the complexities and ensure that you receive the best possible advice. At Healys LLP we believe we have a responsibility to not just provide excellent reliable services, but to also address the myths that cloud the housing market and give a much clearer explanation as to why now could be the perfect time to purchase a property, no matter your current position on the market.