A big question being asked lately is what is going to happen to the UK housing market and house prices.
You might have been waiting a while to put your home on the market, or want to weigh the pros and cons about moving, and perhaps you're asking yourself if now is the right time to buy.
The only person that can make these decisions is you, but as we know, there will always be many factors surrounding your individual circumstances too…
Current Market Trends
The UK housing market has been on quite the ride in recent months and years.
We saw a surge in house prices in 2020 and 2021, fuelled by the pandemic's shift in living preferences and the government's stamp duty holiday. 2022 and 2023 saw prices levelling out in many areas, with some geographical areas seeing a reduction (or correction) in property values. However, a widely anticipated crash did not happen.
What are the Factors that could influence prices?
Economic Conditions: A robust economy with low unemployment and rising wages tends to boost confidence, encouraging more people to buy homes.
Government Policies: Policies such as changes to stamp duty and schemes/support for first-time buyers can significantly impact the housing market. If you're a first time buyer, keeping informed about Government schemes and support will help.
Supply and Demand: The classic rule of supply and demand remains. If there are more buyers than available homes, prices will rise. In contrast, an increase in housing supply can help stabilise or even lower prices.
Expert Predictions
In truth, the future of house prices is a bit of a mixed opinion.
Some experts believe prices will keep climbing, though not as rapidly as before. Others prices remaining static due to economic uncertainties and interest rates not falling as quickly as expected. Higher interest rates have made borrowing more expensive, slowing down the market, but now these rates have been declining throughout 2024 and the Bank of England Base rate has been reduced, this could see a change.
Keeping an eye on the mortgage and property news, keeping in touch with your mortgage adviser and having good financial wellbeing will all put you in a good position to make those informed decisions.
To Buy or Not to Buy?
This is the big question! If you're considering buying a home, think about your long-term goals and financial situation. Assess your budget (your property budget and also your monthly expenses) too see what you can afford and most importantly, get advice from a financial adviser.
We help you assess your current financial state, we look at your affordability and together we discuss your long plans. We can also help find the most suitable mortgage products and also help you navigate the jargon-fuelled market. If you do find a home that meets your needs and budget, it might be the "time is right" for you.
Navigating the housing market can be daunting, but you don't have to go it alone.
Whether you're buying, selling, or just exploring your options, I'm here to help.
Get in touch with us today here or book directly onto my calendar here.
Willow Tree Financial Services are a Financial Adviser based in Polegate, East Sussex, UK. We specialise in Financial Planning, Mortgages, Investments & Pension Planning, Protection & Insurance Wills, Trusts & Estate Planning.
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