When will be a good time to buy a house?
The UK property market is experiencing a boom that has steadily been growing for the past decade. With reports from the National Association of Estate Agents predicting that this increase in house prices is set to continue for the next ten years, it has left a lot of people wondering, when is a good time to buy a house?
On a whole, with the property market soaring so much, itâ€™s a great time to buy a house in the next year if youâ€™re in a financial position to buy. But, there are a few factors which will influence whether individually your circumstances make it a good time to make a purchase such as whether youâ€™re looking to buy a buy-to-let property or a home to live in.
Iâ€™m looking for a buy-to-let
There are many different financial factors which determine whether itâ€™s a good time to buy a house to let or not. Arguably, if youâ€™re a property owner looking to buy a second home or a buy-to-let property, now is definitely the best time as the government have introduced plans to increase stamp duty tax on second homes and buy to let housing this April. This means that any homes bought after it has been introduced will have a much higher tax on them making it a less profitable investment.
Iâ€™m looking to buy a new home
However, as a result of the new stamp duty charges, in the short term this could make house prices rise even more. As people rush to buy homes before the tax is introduced this will push the value of houses up, casting first time buyers out of the market even further. As investors flood the housing market, lots of landlords could also sell up, shaking up the market all round. The government recently introduced its Help to Buy ISAs, in a bid to help young people get on the property ladder, meaning that after the tax has been introduced in April the market may have settled making it easier for first time buyers.
Despite this, it is predicted that over the next ten years house prices could as much as double Meaning that for many young people already struggling, it seems like itâ€™s now or never. For those who are already on the property ladder, the predicted increase means that it could be wise to hang on to your current come for a few more years to see whether its value increases. This is advisable in especially desirable areas like London, where house prices are continually increasing massively year on year.
So, Should I Buy Now?
In essence, no one can 100% predict the future of the housing market but with very little economic changes on the horizon it does appear that house prices will continue to rise, lending restrictions will get tougher and wages will only increase minimally. So buying now, or waiting until after April, is finically as much of a good time as any other.