First-time buyers keen to get their foot onto the property ladder should consider taking the plunge now according to experts at Bankrate.
Currently, the property market is expecting house prices to plummet. This drop in prices might have some homeowners nerves on edge. However, if you are a first-time buyer, it is the perfect window of opportunity to hop on the property ladder for a low price.
Zoopla has predicted that housing sales will be 50 per cent lower in 2020, compared with last year. While the Centre for Economics and Business Research think tank has predicted that prices could drop by 13 per cent by the end of the year.
However, estate agents such as Savills anticipate that this down-turn will only be short-term. Savills has even forecast a robust recovery of the property market by 2022. So that is a two-year window for first time buyers to scoop up a great deal on a house.
‘Before coronavirus, 2020 showed great promise for the UK’s housing market,’ explains Florence Codjoe, personal finance expert at Bankrate.
‘But with lockdown severing demand and halting transactions, property specialists at Knight Frank believe the number of sales in 2020 will drop by a staggering 38 per cent.’
‘Savills similarly predict short term house price will decrease by 5 to 10 per cent,’ she adds. ‘Concerning, yes. But there are things to look forward to.’
‘Low house prices work for first-time buyers, and these lower asking prices mean the potential of jumping earlier ono the property ladder,’ says Florence.
She even argues that shifts in priorities during lockdown could help first-time buyers land an even bigger bargain. For example, many first time buyers might be tempted to settle in less expensive rural areas and work from home than in typically more expensive cities.
‘For those first-time buyers, continue adding to your hard-earned savings and bear in mind a potentially shaky market. But if you find a great deal, go for it,’ explains Florence.
The housing market re-opened this week. So if you have been able to put some money aside during this challenging time, why not take a few virtual house tours?
See if you can get that first foot on the property ladder for a bargain.