Expectation on best time to buy

[LadyfromtheBelleEpoque]

What are everyone's thoughts on when is best to buy for a ftb, no commitments? Once this has all settled down? Before Christmas?

I'd also be interested in thoughts on Sunak's 5% deposit scheme.

Cheers

...when you fall in love with somewhere you really want to live in. There is no best or worst time when you find the right place.

It's best to buy in a recession when the market tanks. You get the best deals then. I also agree with pp, if you fall in love with a property, you'll never regret it.

Probably when furlough and the stamp duty holiday ends.

The property market was ‘meant’ to tank when furlough ends but it everyone is vaccinated and restrictions have gone then they may not be the case. Not sure what the case is with stamp duty for FTB after the general stamp duty holiday eases. Unless that gives you an advantage I wouldn’t wait too long. It seems the market only really goes up and when it drops a bit people only sell if they have to and there’s less supply. You might not need a massive over ask bid to get what you want but that’s not a huge amount. I remember planning to wait until our fixed deal came to an end to save a £1k penalty fee - my brother pointed out houses would rise by that in 6 weeks where I was buying at the time. As for Rishi‘a deal so long as it’s not forcing you to get a new build then that’s great. Also beware management fees /(which can escalate) on new build developments, especially for flats.

It's best to buy in a recession when the market tanks. You get the best deals then. I also agree with pp, if you fall in love with a property, you'll never regret it.

Right...if lending too hasn't tanked, which it usually does.

OP I believe spring is when there's a surge in properties on the market, but it really is a case of when the one you want and can afford comes up. I don't know anything about RS's scheme but we bought a starter home with a 5% deposit in 2017, within 2 years we remortgaged to an 85% LTV mortgage and upsized a year later, worked well for us. I would just be careful not to buy anything too short term with a small deposit at the moment in case the market does drop, you risk negative equity, I'd ideally buy somewhere for 5 years and fix for that long if the interest rate isn't too bad.

When you can afford to. This government will never let the housing market drop by any significant amount, they will always come up with more and more schemes that'll keep people buying at these ridiculous prices.

Thank you all for your replies - really appreciated.

I cannot see the market being allowed to crash (a good thing for people in it) so I’m going to base my decision to buy on that although privately I think it should be in line with salaries.

Sunak’s deal will encourage more people to buy, imv, as it is not restricted to ftb or new builds - this, to me, is key. I would aim for a freehold do upper flat need a station and park and, on my budget, prob zone 4/5 with the aim to move up to something in a better area eventually. The goal, long term, is to have a nice flat in a good London area (zone 1/2).

Lots to think about as it also depends on work.

When you have a reasonable deposit saved, are in a steady, permanent job and when you feel mature enough to deal with the responsibility and maintenance of owning a home.
Traditionally more transactions take place in Spring, as the weather improves and gardens look better and people start thinking about school years so want to move over the summer. But FTB might be more flexible (not have children yet pethaps) and you can get better deals at other times of year.
Once you have your finances sorted (mortgage in principle etc) figure out what kind of home you want and the area you are interested in, set up alerts through rightmove (or similar) and register with the local agents. Be flexible - what doesn't appeal on paper may actually be perfect.

@LampsOn

..when you fall in love with somewhere you really want to live in. There is no best or worst time when you find the right place.

I have fallen in love (since a child) with many places in London where I grew up but realistically, I just can’t afford them. I was all set to get on the ladder just before the boom when I was diagnosed with a health problem that has completely knocked my career and finances off course. I’m hoping to find a way back in the bottom that I can use to pull my way back up🙏

Sorry to hear that OP. Hope it all works out for you.

Cheers @LampsOn. I think I can

We are about to go on the market in NW5, 1 bedroom with private patio/shared garden. If you're interested please let me know. Would be great to avoid estate agents...

Thanks @Anna but I suspect it would be way beyond my budget

Unfortunately yes. Best of luck finding somewhere.

We are hoping things stabilise somewhat in Autumn for z3 houses... might miss the boat on stamp duty but might have less competition. As fstb under £200k it might pay off to wait out the stamp duty freeze inflation. Unless you find somewhere you love.