Why Now May Be An Ideal Time To Buy In London

If you are looking to buy a home here in Hounslow, you might have many considerations in mind. Of course, you want to find a home that suits you. Issues like public transport, access to amenities and schools are also important. But you might also ask if now is a good time to buy a property.

Last year saw a downturn in the property market as the economy struggled, the cost of living crisis made saving up deposits harder and mortgage costs increased as the Bank of England raised base rates multiple times. Although house prices did drop a little in London, this reflected a gloomy market.

However, there are good reasons to be optimistic. Firstly, the economy is out of recession and inflation is down to 2.3 per cent, withwage growth now exceeding price rises. Unemployment is up a little, but this is a lagging indicator of economic fortunes and as the economy grows that is unlikely to be a lasting trend.

At the same time, this good news has not yet led to house price increases. The latestHalifax House Price Index shows house prices are static, which Halifax head of mortgages Amanda Bryden said should “give a degree of confidence to both buyers and sellers”.

A third factor to consider is that of interest rates. The recent rate cut implemented by theEuropean Central Bank might be a prelude to the Bank of England doing likewise soon. Although the next Monetary Policy Committee meeting is on June 20th, with the body precluded from cutting rates during an election campaign, the wait may not be long.

That means buying now will bring the advantage of doing so before the recovering economy and falling mortgage rates strengthen the property market - and potentially fuel house price inflation. At the same time, lower inflation could lead to a succession of rate cuts, so that you may benefit from a variable or tracker mortgage that becomes cheaper as this happens.