Is it a good time to buy a house (UK)?

Question

Hi-

So my fiance and I are looking for our first house. We started looking about 6 months ago when prices had dropped dramatically, but not as much as they've dropped now! This makes me a bit nervous...do you think they will drop more? Would we be silly to buy if the government are going to bring in more incentives for first time buyers?

We have found a house we really like. This time last year it was selling for £235k. We are now being offered it for £120k. It's a great drop...but is it enough?

Thanks in advance

Answer 1

wait until february

you will save 5-10% more!

Answer 2

We recently went to see a mortgage advisor and he told us that if you have a deposit and you are first time buyers then it's an excellent time to buy a house, but if your not first time buyers or part of a chain you shouldnt consider buying or selling !

My way of looking at it is everything happens for a reason, if you find your dream house and can afford it.... then maybe its ment to be ?

Answer 3

If you have the money or can raise it at a reasonable interest rate, it is a great time to buy a house.  When I buy a house, it is as home rather than as an investment (though it tends to be a good investment over time anyway).  If you have found the home you want at a price you can afford, I'd go for it provided I was reasonably sure my own household income level was safe.  Even if the market falls further, it will bounce back in time.

Answer 4

you've got nearly 50% thats probably a bit much it's too good to be true even in a falling market.

Answer 5

I'm househuntingat the moment. If you've found the house you like and you can afford it, I'd suggest you buy it.  If you keep waiting for the right moment then you won't ever move.

The market may continue to drop, but the sellers may always decide it is too great a drop and take the house of the market (its the problem we are having househunting.) If you wait for the Chancellors statement on stamp duty that could be tomorrow or in several months.

And lets be blunt here, a £115K drop in price is already a great deal!

Just remember to get your survey and everything else done first.

Answer 6

It is a very bad time to buy a house because there are lots of people trying to sell and cannot, which means that prices will soon go down more to encourage buyers into the market (and encourage mortgage lenders to lend again).

Wait 18 months - That's what I'm doing.

BTW the answer above where the mortgage advisor says now is a good time to buy would say that - he's making commission on the sale of a mortgage!

Answer 7

I have heard that they may drop further, however if you are planning to live there for a long time then you are still likely to make a profit when the market goes up again.

You also need to consider whether this is a nice house and potential investment or the house of your dreams? Because if it is the latter then you'd be gutted to lose it.