Is it a good time to buy?

This is a question that we get asked a lot. Buying a home to live in is a special kind of investment, its not just numbers on a page but a roof over your head.  

The truth is that there are too few new homes being built to keep up with demand, meaning that the existing housing stock has fallen behind what is truly needed. it all starts with affordable homes for first time buyers and with these in short supply prices are sustained.

Confidence is strong in the job market with people happier to make a long term commitment to a mortgage, despite all the other uncertainties in the world.

Interest rates have really settled into a groove now with the Bank of England keeping their rate steady at 5.25% Headline inflation has come down to its 2% target although the underlying rate which more directly impacts interest rates has been less inclined to reduce, but stability is in play.

If people are confident in their jobs then in a stable interest rate environment with too few properties to choose from, it is a really great time to buy even if some say otherwise.  

Its less frantic than when the market is too hot, you can more easily arrange viewings and there are less competing offers around.  

The alternative to buying for most people means the private rental market and anecdotal evidence is pointing to stresses here. Many landlords are selling their rental assets with increasingly harsh taxation and tougher regulation the main cause. Fewer landlords means fewer rental properties on the market which is feeding through to higher rents.

Deposits remain the main hurdle for First Time Buyers, innovation from some of our Building Society partners in particular means that for some people there are options for a 100% mortgage, or a reduced deposit of £5,000 – get in touch to discuss these options.

Home movers are given a more easy ride in a calmer market too with agents more open minded to building chains to help sales along.

So for people getting onto the housing ladder, or moving up it it is a great time to buy but if you are looking to sell and exit the market then you might want to wait for interest rates to drop before you do. Experience has shown us that when mortgage rates being with a 3 then the market flies.