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Is now best time to buy a house?

January 21st 2015
By: Melanie Hollidge

Over the past few years we have experienced increasing house prices in the South East. Prices have increased for a number of reasons; people moving out of the expensive capital have helped to push up prices, lack of housing, good schooling across Surrey and its great location.
 
However according to many property experts we are expecting to see a slight dip in the market this year, as new mortgage rules could push prices down for the first time since 2011. Expected growth for last year was around 7.8% but the CEBR, Centre for Economics and Business Research expects there to be a slight fall in 2015, by 0.8%. With prices in the capital expecting to fall by 2.6% over the coming year.
 
Although Howard Archer, Chief UK economist at HIS Global Insight told the Daily Telegraph that he was not expecting house prices to fall. 'With housing market activity clearly off its early-2014 highs, we suspect house prices will generally rise at a more restrained rate over the coming months,' he said. 'Specifically, we expect house prices to rise by around one per cent quarter-on-quarter in the fourth quarter of 2014. We see house prices rising by around five per cent in 2015.'
 
House prices are always going to be expensive in the UK as lack of supply fuels demand. Mortgage criteria is getting harder, which has resulted in the amount of mortgages being approved has fallen.
 
One of the key factors in working out whether it’s a good time for you to buy or not is to make sure you love the property you want to buy and can afford the mortgage payments on it. House prices are due to increase in the long term, so if you are looking at a long-term investment this could be a good time to invest. By 2019 house prices in the UK, especially in the South of England are expected to have increased by at least 30%. The CEBR have also said that house prices will soon hot up again after their brief dip, so if you have the money to buy a house then now could be a really good time to invest. Interest rates are low and if you have a healthy deposit you might be in a strong position to negotiate.
 
If you would like any help and advice on purchasing a property then why not pop into your local branch of Goodfellows for a chat and a coffee or call our team on 0845 372 7070.
 
Source: The Week