With both a newly elected Prime Minister and the looming Brexit date of 31st October to content with, the uncertainty surrounding the British economy is certainly making financial decisions more difficult. For those looking to purchase a home, the question of should I purchase now, or should I wait to see what happens is prevalent, and it’s a difficult one to answer.
The truth is that quite simply, no one can predict exactly what is going to happen to both the economy and to the property market over the next few months. Whilst there’s been substantial talk surrounding a potential property market crash, the truth is that this is very unlikely to happen. In fact, house prices are continuing to rise, despite the markets’ awareness of a potential no-deal, so it’s safe to say that the economy isn’t exactly going to fall apart come October. The public also seem to agree with this narrative, with recent research by Emoov suggesting that upwards of 30% of their survey respondents expected house prices to continue increasing despite uncertainly, with a further 28% expecting prices to simply plateau.
Whilst we can’t predict exactly what’s going to happen in the future, we can discuss the market at present. With interest rates at a historic low, both shorter and longer-term fixed mortgages are offering fantastically affordable rates. Couple this with the flexibility of shared ownership, help to buy and part exchange and the options to buyers are as varied and affordable as they’ve ever been.
When it comes to the many building societies and banks available to lend, competition is rife. Because of this, financers are extremely keen to lend, which in turn has supported attractive rates and more understandable approaches when it comes to customers more complex situations. Whilst in the past financial circumstances such as low deposits, work probation periods and zero-hour contracts could have all posed potential threats to a mortgage application, these days financial advisors are much more likely to be more flexible, making right now a fantastic time to purchase a home.
For those not currently able to buy on the open market, shared ownership is a fantastic option. With so much confusion surrounding shared ownership as a way to buy, many of those who may benefit from the option simply haven’t considered it. Amy Nettleton, Assistant Development Director at Aster explains “Shared ownership is a really powerful enabler to help you get on the ladder or get a home if you find yourself buying on your own, later in life for instance. Essentially, through shared ownership you’ll only need to find a five percent deposit. Then you can purchase a share (from 25 to 75 percent) of the home and then pay rent on the remaining value that you owe”.
There are currently a fantastic range of shared ownership homes available both within and surrounding the London area, with Surrey proving popular. Aster currently have shared ownership homes in Surrey for sale, with plots available through the scheme in locations such as Farnham, Cranleigh and Badshot Lea.
So, whilst different experts will have varying theories on the effect of Brexit on the housing market, the one thing that can be agreed on is that buyers simply need to trust their judgement. If a dream house has been found and it’s the right price, or if buyers are keen to make the most of the varying options available to support purchasing, now is certainly the right time to buy.
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