Are you desperately trying to get on the UK property ladder? Here are 5 reasons why it's a bad idea right now.
The CEBR also predicted that mortgage rates could also calm down by then, making it a more opportune time for first-time buyers to capitalise on the market – sparking hope that properties could become more affordable in the next few years.
Simon Bath, CEO of iPlace Global, gives his advice: “My suggestion for all prospective buyers who are currently renting is that they calculate how much they are due to spend on rent in the interim, and judge how long they can realistically afford to save in anticipation of prices declining".
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Experts have warned that the house price boom is set to reach rock bottom out by the end of 2023, so buying a property now will only mean you are buying at inflated prices. Experts are encouraging first time buyers to wait until 2024 when prices will become lower and more reasonable.
Currently, the average price of a property coming to the market stands at £371,158 – a new record fuelled by the widespread economic and political uncertainty plaguing millions of aspiring home owners across the country.
Mortgages are also a minefield with the average two-year fixed mortgage rate touching 6.46%, and the average five-year fixed mortgage now at 6.32%. Unsurprisingly first-time buyer demand was 21% lower at the time of writing, compared to 2021 – highlighting the many barriers that aspiring buyers are facing in the journey to purchasing their own home.
Renting is no safer ground as the rental market is in chaos with 26% of landlords looking to sell their buy-to-let property due to soaring costs. This is creating a severe shortage of available rental properties with rental prices set to become even more expensive due to the sharp landlord sell-off. Most aspiring first-time buyers will have had their plans dashed by the continuous interest rate hikes and face a difficult situation.
Due to recent government policy changes on buy-to-let properties, alongside the surging energy and mortgage costs, landlords struggling with the increased maintenance costs are subsequently looking to capitalise on the current state of the market and exit while they can. In the capital, 55% of landlords who signed a new contract with tenants so far this year did so at a higher price, up from 30% in 2021.
Recent reports show that more people are currently looking to exit the market than enter. The Centre for Economics and Business Research (CEBR) predicts that over the course of next year, house prices across the UK will fall by 8-10%, with expectations that the market could fully level out by 2024.
Currently, the average price of a property coming to the market stands at £371,158 – a new record fuelled by the widespread economic and political uncertainty plaguing millions of aspiring home owners across the country.
Mortgages are also a minefield with the average two-year fixed mortgage rate touching 6.46%, and the average five-year fixed mortgage now at 6.32%. Unsurprisingly first-time buyer demand was 21% lower at the time of writing, compared to 2021 – highlighting the many barriers that aspiring buyers are facing in the journey to purchasing their own home.
Renting is no safer ground as the rental market is in chaos with 26% of landlords looking to sell their buy-to-let property due to soaring costs. This is creating a severe shortage of available rental properties with rental prices set to become even more expensive due to the sharp landlord sell-off. Most aspiring first-time buyers will have had their plans dashed by the continuous interest rate hikes and face a difficult situation.
Due to recent government policy changes on buy-to-let properties, alongside the surging energy and mortgage costs, landlords struggling with the increased maintenance costs are subsequently looking to capitalise on the current state of the market and exit while they can. In the capital, 55% of landlords who signed a new contract with tenants so far this year did so at a higher price, up from 30% in 2021.
Recent reports show that more people are currently looking to exit the market than enter. The Centre for Economics and Business Research (CEBR) predicts that over the course of next year, house prices across the UK will fall by 8-10%, with expectations that the market could fully level out by 2024.
The CEBR also predicted that mortgage rates could also calm down by then, making it a more opportune time for first-time buyers to capitalise on the market – sparking hope that properties could become more affordable in the next few years.
Simon Bath, CEO of iPlace Global, gives his advice: “My suggestion for all prospective buyers who are currently renting is that they calculate how much they are due to spend on rent in the interim, and judge how long they can realistically afford to save in anticipation of prices declining".