Buying property is a big decision, and timing can be critical. But the UK market is strikingly resilient
Is now a good time to buy a house? That’s the million dollar question. Over the past 30 years, homeowners across the UK have accrued enormous profits from their properties, and the boom seems to keep on booming against the odds. Even during the global pandemic, UK houseprices remained strong and demand was seemingly unstoppable. But anyone considering buying a house now will be asking: how long can it continue? Is the bubble finally about to burst?
Buying property can be anxiety-inducing, and nobody wants to feel that they’re buying at the top of the market, where the threat of negative equity is real. As Aaron Strutt of Trinity Financial points out, “it is difficult to know when it’s the best time to buy or sell as it is almost impossible to predict what is going to happen to the property market.” But of course, much of the market is fuelled by necessity, and people have a huge variety of reasons for moving house, regardless of what happens to be going on with current property values. He says: “For many people, there is generally a need to buy or sell up; for example, they need a bigger home, want more outside space, or they need to relocate for work. Many people have the choice between renting or buying, but with such a shortage of rental properties, many would rather own somewhere so they are in control of their monthly costs rather than rent.”
Right now, we are seeing rents rising even faster than mortgage rates, so buying might make more financial sense for many tenants who might in the past have been happy to continue renting. And even though house prices may be coming down in many areas, buyers are still facing record-high asking prices. Strutt reports: “We have noticed more purchase activity, and buyers are returning to the market. Some of our clients are still going to sealed bids to secure properties. One recently paid £150,000 over the asking price to make sure he got the property he wanted.”
Zoopla’s house price index showed that athough house price growth slowed to 3% in April, both demand and supply were recovering. And now is definitely a better time to get a mortgage than nine months ago after the ‘mini-budget’, when mortgage rates were significantly higher. So is it a good time to buy? Well, if you have finance in place and a mortgage agreement, it’s pretty much always a good time to buy, especially if you are looking at the long term. The UK property market continues to show a striking resilience and home ownership remains a fundamental goal for most of us. If you’re considering taking the plunge, advice would appear to be: go for it.