Image Credit

The prices of homes in the UK have increased by 10% from the beginning of the year to November 2021, as the latest official figures show. If you’re thinking of buying a new home in 2022, you may be asking yourself if now is the right time or if it’s best to wait it out for another year. What if the prices rise even further in 2023? What if they drop? The Bank of England did issue a caution in 2020 that property costs may rise as high as 16% because of the pandemic. But, from the look of things, the market appears to be thriving, defying all odds. So, should you make that purchasing move now?

The average price for a residential property in the UK hit £271,000 in November 2021 -about £25,000 higher than it was a year before. Experts attributed this increase to several factors, including low mortgage rates, high desire for rural living, a small supply of houses, and pent-up demand. Meanwhile, an increase in the number of first-time buyers coupled with a race for space appears to have breathed a new lease of life into the market. 

Despite the negative effect of the current pandemic on the housing market, experts expect the market to move a bit closer to normal this year, which should encourage any aspiring homeowner in 2022. That is also reflected in the gradual increase in the number of homeowners requesting valuations from various real estate agents to sell their homes. 

Experts have also predicted that borrowing costs will rise this year, and household budgets will come under mounting strain. While this might dramatically slow down the housing market, there should be enough demand to keep it thriving.

So, should you make the financial commitment of owning a home in 2022? If you’re thinking about buying your first house, one thing you cannot ignore is that houses have become more expensive than they were a year ago. Although the Bank of England has increased interest rates from 0.1% to 0.25%, mortgage rates are still low. However, with time, the increase in interest rates might make it difficult to find cheaper mortgage packages and more expensive to borrow for your first home.

Image Credit

As a first-time buyer, you’re probably hoping that market prices will drop soon, but there’s no guarantee for that. So, you can go ahead and make that purchasing decision while the market looks comparatively favourable. In addition, even in the face of COVID-19 issues, the real estate market has pretty much stood its ground to a certain degree, and that’s a good sign for any aspiring buyer. The most important thing is to ensure that you do enough research before jumping into any property investment.

If you have a good financial plan and can afford to buy a new home, it’s best to make a move now than to wait for some favourable market changes that may not happen. Regardless of the gloomy predictions that many financial experts have made about the market, it’s safe to say that no one has the crystal ball.