When is the best time to buy a house?

Buying a house is rarely a simple process and, particularly in uncertain economic times, deciding when to make your move in the property market can be difficult.

Even in more predictable conditions, when inflation isn’t rising and people aren’t experiencing a cost-of-living squeeze, knowing when to take the plunge and buy a house is hard to judge.

Traditionally, spring and autumn are the busiest periods for buying properties as there is “more housing stock available”, according to Ideal Home. Conversely, winter and summer are traditionally the best times to sell a house as “there’s less competition on the market”.

March is the best time to list your house if you want to “sell fast”, according to The Times, and is a good time for buyers too as generally more housing becomes available then. August is particularly quiet for listings as homeowners head off on holiday, while they “​​tend to stay put” over the Christmas period as well, making December one of the more difficult times to buy.

What is happening in the market now?

The housing market experienced a boom in 2021 due to the Covid-19 pandemic and the government’s temporary stamp duty cut. This has resulted in a “volatile market” and house prices that have “risen considerably” since then, according to Stephen Maunder at Which? 

The Land Registry’s UK House Price Index indicated that there was a 12.8% average increase in house prices year-on-year in May 2022, while property purchases fell by 55% in June 2022 compared to last year, according to HMRC.

“Limited supply and strong demand is keeping house prices high,” said Faith Archer in The Times, meaning that at the moment it is very much a seller’s market.

Rising inflation and costs do mean house prices could fall, though it is “unlikely that house prices will crash”.

Property site Rightmove says that house prices could fall slightly towards the end of 2022, although it predicts that prices could still be 5% higher than they were at the end of 2021.

What about mortgage rates?

The Bank of England increased its base interest rate to 1.75% in early August, meaning the best time to have applied for a mortgage was “six months to a year ago”, according to Claer Barrett in the Financial Times.

Article source: https://www.theweek.co.uk/arts-life/property/957680/when-is-the-best-time-to-buy-a-house