Is 2021 a good time to buy property?
Although for many of us it’s a year we’d probably rather try and forget, 2021 is set to go down in history.
Whilst there is much we hope never to repeat of the full lockdown experience, there are positives to be drawn. We’ve discovered new skills, refocused on family and even taken the opportunity to improve our fitness levels.
Perhaps it’s itchy feet after so spending so much time confined within the same space, or maybe 2021 was always supposed to be the year you made a move, but another lockdown trend seems to be the desire to move home. But the question is – is it the right time?
Let’s take a look at both sides of the argument.
The pros of buying property in 2021:
- No stamp duty – stamp duty is the tax paid when buying a property. The amount you pay depends on where in the UK your property is and its price tag. In England and Northern Ireland this tax has been scrapped until 31 March 2021 for all properties under £500,000 – meaning that, at the moment, most of us won’t need to pay anything.
- Low mortgage rates – UK interest rates are at an all-time low, with banks currently offering some great deals on lending.
- It’s time for a change – after months surrounded by the same four walls, many of us have re-assessed the way we feel about our homes and how well they work for us. Now is a great time to search for somewhere new with a more focused idea of exactly what you want and need from your living space.
- Plenty of choice – with so many people ready for a change, tempted by the financial incentives, or trying to put life back on track after property sales were on hold, you’ll find there is plenty of choice on the market.
The cons of buying property in 2021:
- House prices are rising – whilst house prices initially fell post lockdown, they are now rising. However, it’s important to factor in here that many experts believe prices will drop again once the full financial impact of Covid-19 is felt.
- Lending may be problematic – yes, mortgage rates are enticingly cheap, but lenders are demanding larger deposits and you’ll need good credit and affordability scores to secure one.
- Jobs are uncertain – the pandemic is continuing to take its toll on the country. With the furlough scheme reducing (and ending altogether in October), the future of jobs across all sectors seems uncertain, potentially making thousands of positions vulnerable.
What’s the answer?
Deciding on the right time to buy property is always a difficult decision, but never more so than now. These are unprecedented times and even the experts can’t predict exactly how the market will play out.
What you do have to do, is make an informed choice. Use the pros and cons listed above and relate them to your specific set of circumstances. This will help you decide on the most sensible course of action for you.
One thing that is for certain though, when you do decide it’s time to make a move, you’ll need a professional conveyancer by your side. And that’s where we come in. Here at GD Property Solicitors, we have a team of conveyancing experts on hand and ready to help. We know the process of buying and selling property inside out and can help you to navigate the safest and fastest route through the legalities, offering expert advice and guidance every step of the way.