Is Now a Good Time to Buy a House?

Between inflation changes, rising interest rates and post-pandemic unknowns, it can be tough to determine when’s the right time to buy a house in the UK. But now faced with cooling inflation and stable interest rates and the pandemic – thankfully – behind us, you might be wondering if this is it – should I buy a house now? While there’s no one-size-fits-all answer, here at Purplebricks Mortgages, we like to tackle big questions and break them down into manageable answers.

So, whether you’re a first-time buyer or are looking to move into property investment, this guide can help you decide if buying a house now makes sense for you.

What’s going on with house prices?

If you’re thinking of buying a house, naturally, you’re going to be thinking about house prices. So, what’s happening with house prices in 2024?

It can be tricky to get an overall sense of what’s going on with the housing market with so many figures that seem to say different things. This is because the stats are measuring slightly different changes – from asking prices to mortgages approved to year-on-year changes and month-on-month variations. It creates a lot of noise.

The latest report from the Office of National Statistics showed that in 2023, the average UK house price had an annual change of -1.4%, which meant that prices dipped a little (around £4,000 lower than December 2022). In December 2023, the average property price in the UK was £284,691, according to HM Land Registry.

Will house prices drop?

Isn’t that the ultimate question? Before getting caught up in looking at houses for sale online, it’s wise to get clued up about the property market – and what’s happening in the world of house prices.

The Office for Budget Responsibility (OBR) has forecast that UK house prices will fall by 4.7% in 2024, which could take the average British home to be worth £266,000 by the end of the year. OBR said it could take until 2027 for house prices to recover to 2022 peak levels. However, they stated that there was always going to be a house price correction, with potential homeowners able to take advantage of the buyer’s market at the moment.

What about mortgage rates?

Another factor to consider when deciding whether to buy a house now is the mortgage market. While current rates fluctuate, it’s a good idea to keep your eye on what’s happening so you know when’s a good time to secure a low rate. That’s why it’s important to work with a professional mortgage advisor who can navigate the market and look for different deals on your behalf.

So, should you buy a house right now? Key takeaways:

• House prices were low but have steadied. This is particularly appealing for first-time buyers who want to maximise their budgets.

• House prices may continue to drop, so some people are waiting to see what will happen and may pounce at the right time.

• Mortgage rates are still higher than in recent years, meaning the cost of borrowing is high too.

• The right time to buy a house is to buy when it’s right for you, your needs and your financial situation.

Find your mortgage deal

Have questions about how to lock in a mortgage deal that will get you moving? The advisors at Purplebricks Mortgages are on hand and ready to help. Simply pop in your details and we’ll be in touch shortly to discuss your options.

We aim to make sure that information is accurate at the time of publishing. As the property market moves fast, please be aware that some information may now be out of date. Purplebricks Mortgages Limited accepts no responsibility or liability for any decisions you make based on the information provided.