Should we postpone buying in case house prices fall?
Stick or twist – it’s the age old question for many people when it comes to buying their first home.
Prospective buyers may be forgiven for treading warily in the hope of securing a cheaper property or larger property for their money by delaying any purchase in case prices fall.
This may be especially true as we head into 2018 with Brexit approaching and a recent warning from the Bank of England that interest rate rises are on the way.
However, most experts don’t expect any great crash or ‘correction’ in prices; rather they will continue to rise although perhaps not at the pace of recent years.
The abolition of Stamp Duty on properties under £300,000 for first time buyers is an added incentive. First time buyers are also attractive to sellers because they usually don’t have a chain to worry about.
Interest rates may go up but any increases will be staggered in small steps over the coming years rather than in one large hike. Mortgages remain competitive, so this may actually be the best to time invest a new home rather than hesitate.