Buying a Property in 2023? Here’s What You Need to Know
By The Cooper Adams Team
Subscribe to newsletterIf 2023 was the year you were going to buy a new home, it’s fair to say that the gloomy news headlines might have you rethinking things a bit. Is it the right time to buy? Should you rent instead? Should you move in with your nearest and dearest and hope they don’t mind?
It’s a tricky one. But when the housing market is rockier than a Bon Jovi concert, you might feel more apprehensive than usual about investing your cash.
In this quick read, we look at three reasons why buying a property this year is still a good idea and why it’s important to stay positive.
It's a Buyer's market
Let’s get into some basic economics: when supply is greater than demand, the market responds and prices drop. And right now, due to a range of factors, the housing market is floundering. There’s lots to buy but not many people actually buying. So, if you are a serious buyer in the current economic climate, you may be able to afford properties that were out of your reach this time last year.
Properties are getting stuck on the market for longer, so sellers may resort to reducing their prices or there may be more room for negotiation. Of course, this rule doesn’t apply uniformly throughout the UK (as some areas retain high asking prices), but it’s always worth a shot.
Mortgage mayhem
Unless you live under a rock, in a cave in a faraway land, you’ve probably heard that mortgage rates are high right now. But does that mean you should back out of buying completely?
By working with a good mortgage broker, you can learn what type of mortgage best suits your needs, find competitive rates from various lenders, and decide on a reasonable mortgage term. All this information may surprise you into realising you can still afford to buy.
It’s also worth noting that mortgage rates are subject to change (i.e. they won’t stay high forever), so don’t let go of the dream of owning your own home.
Rents are higher than ever
If you’ve been saving for a deposit, but you’re worried about mortgage repayments, it’s worth looking at rentals in and around your chosen area. You may find that mortgage costs work out at less than monthly rents.
Speak to your agent about the local rental market and they’ll be able to give more insight into the situation. They may also be able to refer you to a mortgage broker to find a good deal.