Is now a good a good time for first-time buyers to get on the property ladder?
As the housing market reopens.
There has been speculation that after such a long pause, now could be the ideal time for first-time buyers to bag a bargain. But is it really the best time to purchase your first home? Here’s everything you need to know.
Have house prices fallen?
It’s tricky to say, according to experts. Anthony Codling, housing market analyst and CEO of online property platform Twindig, says the latest data shows that prices are still rising – “but that data is from April 2020. With transactions drying up there is little data to go on.”
House prices were going up prior to lockdown; when the market closed, house prices did not change as there were no sales. The Office for National Statistics has even temporarily suspended its UK house price index until further notice due to a lack of available data.
Will they fall in future?
The Centre for Economics and Business Research predicts that 2020 prices will be down by 13 per cent “as a lack of transactions, high uncertainty and falling incomes take their toll”
Is now a good time to buy for first-timers?
In some circumstances, yes. While homeowners may decide not to sell their property due to Covid-uncertainty, housebuilders do not have the same option to hold off on sales.
“During the credit crunch, the housebuilders doubled their market share in the housing market,” says Mr Codling. “Housebuilders are also much more pragmatic on price than homeowners because they have to sell and are not as emotionally attached to the homes they are selling.
“Many housebuilders also have accounting periods ending on 30 June 2020 and will be looking to meet sales targets – this provides the first-time buyer a great opportunity to negotiate an attractive lower price.”