There has been much talk and speculation lately about house prices being on the up. Whilst this is certainly good news for sellers, the housing market as a whole and the economy, buyers, and particularly first time buyers (FTBs), should look to act quickly.
If you’ve been saving for that eliusive deposit for your first mortgage or have been pondering on that move to a larger property, our advice is “don’t hang on to your money”. If the predictions are true (and all the evidence indicates they are), house prices are set to continue growing steadily over the next few years. This growth will spell even higher deposits for first time buyers and difficulty in upsizing for those already on the property ladder.
Mistoria’s Senior Estate Agent Mike Quinn explains, “For the last five years or so, since the recession, the UK’s housing market has struggled to recover. Although this upward trend is what the market needs, those not already on the ladder may find it even harder to get there.” He summerises, “If house prices go up, so do deposits.”
Some experts warn the industry could be heading for another crash if house prices grow too quickly. Mike comments, “As demand increases, prices will rise and without suitable housing to fill in the gap, we could be in danger of another bang.” As buyers overstretch their purse strings, the Government’s ‘Help To Buy’ scheme – introduced to help get first time buyers on the property ladder by providing financial assistance – could help counter this scenario.
“The housing landscape is volatile and there are no guarantees when it comes to price trends” continues Mike. “Our advice to FTBs as house prices rise: if you’ve got a deposit – even if it’s not the full amount that you wanted – now is probably the time to look at getting a mortgage. Even if it’s on a smaller property than you had planned, we say get on the ladder sooner rather than later!”
Mistoria Estate Agency are a team of finance professionals and estate agents with many years of experience in successfully buying and selling property across the North West. If you need help and advice buying or selling a property please call us on 0161 707 6106 or email firstname.lastname@example.org/sales.