5 things you should know about buying a house right now

22 Sep 2021 5 things you should know about buying a house right now

 

  1. Prices are still rising

The average UK property price is currently £262,954, the highest on record, according to Halifax. A typical home will cost buyers an average of £23,600 more than if they had been purchasing the property in June 2020.

The growth in house prices may be starting to slow but there is no sign that they have peaked yet. And waiting to buy could see house prices climbing even higher.

Halifax’s monthly house price index showed that the annual rise for August was 7.1 per cent, compared to 7.6 per cent in July.

One of the reasons behind the strong property market is thought to be people prioritising their homes due to the Covid-19 pandemic. An increase in homeworking and people spending more time in their properties during lockdowns and self-isolation periods has seen growing numbers of people looking for more indoor and outdoor space.

 

  1. There are incentives to buy

If you are buying a house for the first time, the current conditions may be making you reconsider your decision. But there are a number of incentives aimed at first-time buyers to make it easier to get onto the property ladder. 

These include a five per cent deposit scheme which means borrowers can get a mortgage for 95 per cent of the property’s value – useful for people who haven’t managed to save a large sum of money. The government has made the scheme more attractive for mortgage providers by agreeing to pay out if the borrower defaults on their payments.

The scheme began in April and will run until December 2022. To be eligible, buyers must be purchasing a property in the UK which will be their main residential home and it must be worth £600,000 or less.

If you are aged between 18 and 39, you can open a Lifetime Individual Savings Account (LISA), which can be used to save up a deposit to buy a first property worth up to £450,000. You can put in up to £4,000 a year until you are 50 and the government will add a 25 per cent bonus – a maximum sum of £1,000.

Those wanting to buy a new build property in England can take advantage of a help-to-buy equity loan. This is an interest-free loan of up to 20 per cent of the purchase price – 40 per cent if the property is in London. The loan is interest-free for five years and then interest must be paid on the amount borrowed. A similar scheme in Wales allows people buying a new build home worth up to £250,000 to take out a shared equity loan for 20 per cent of the purchase price.

 

  1. A proactive approach to house hunting is necessary

As many houses are not staying on the market for long, you need to be proactive when it comes to finding your new home. As well as scouring the major property websites, talk to your local estate agents and make sure you are on their lists as they may be able to alert you to homes before their details are uploaded online. You can also set up alerts on sites like Rightmove to make sure you get alerts when new properties go on which meet your criteria.

 

  1. Be ready to move quickly

A strong housing market means properties are selling quickly and competition among buyers can be fierce. In some areas, buyers are offering significantly more than the asking price and many are finding it difficult to get their offers accepted.

One way you can make sure you are in a strong position is to make sure you are ready to move quickly once you have found the property you want. Speak to a mortgage advisor before you look at properties so you know exactly how much you can afford to offer.

If you have a property to sell, you may want to consider trying to sell it first so you are not in a chain. This may mean putting the contents of your home into self-storage and renting for a short period or staying with family or friends until you are ready to move into your new property.

If you are a first-time buyer, then you are an attractive prospect to sellers as you don’t have your own property to sell, which can cause delays. Make sure you resolve any issues which could delay your move before you put an offer in so you can complete the sale quickly if necessary.

 

  1. Removals firms are busy so don’t leave it until the last minute

The high volume of people moving house means it is essential to book removals firms as far in advance as you can. Do your research and get a quote as soon as you know you are planning to move. It may be a while before you can finalise your moving day but keep your chosen firm in the loop with what is happening.

Andrew Porter Limited handles house moves all over the UK and offers a range of additional services including packing and insurance. For more information, contact the team on sales@andrewporterltd.co.uk or fill out our online contact us form and one of the team will be in touch.

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