The UK housing market has been in a state of flux for the past few years. The great recession brought about a sharp decline in home prices and sales activity that persists to this day. And, as the economy continues to recover, we’re now seeing a gradual uptick in interest from potential buyers. While this presents opportunities for prospective investors and first-time buyers, property consultants UK concedes that the situation can be overwhelming for current homeowners too. With that being said, what should you do? Should you buy or build your home? Let’s take a look at some of the key factors to consider before investing in real estate today.
What’s driving house prices in the UK?
Real estate prices in the UK are primarily determined by supply and demand. As demand for homes is low, prices are also likely to stay low for the time being. Homeowners are also reluctant to sell their properties because they are hoping to wait for the market to turn around. For now, the economic climate and government policies are the major factors influencing the market. Other factors such as demographics, taxes, interest rates, and future planning also play an influential role. Further, the new government wants to boost the economy and revitalise the housing market by offering free housing to first-time buyers, raising the stamp duty tax, and allowing home improvement tax breaks.
Is it time to buy a home in the UK?
When it comes to deciding if it’s time to buy a home in the UK, there are many factors that must be taken into account. Home prices in the UK have slowly increased over the past few years. If you’re confident in the long-term prospects of the local economy and think that housing prices will increase significantly in the near future, then now could be the time to make the leap. You should also consider your financial situation and ability to service a mortgage. Further, homeownership is widely considered to be a sound long-term investment. But if you’re financially vulnerable or have other commitments that make it difficult to service a mortgage, then there may be better options for you.
Should you build your own new home?
In choosing this route, you will benefit in a variety of ways. You get to choose the size, layout, design, and location. In addition, you can also integrate features such as energy efficiency, smart home technology, and eco-friendly and pet-friendly spaces. But you’ll have to factor in the costs involved in this project, which can run into thousands of pounds. However, an added advantage is that you might end up with a home that specifically meets your personal preferences. This is because you get the freedom to choose a design and layout that meets your taste. Plus, if you’re planning to stay put for a long time, then a home built by yourself could be a better option. It can also be a great way to save money and create a strong credit history for your future.
Should you invest in an existing property?
When it comes to investing in an existing property, there are again several factors that you should consider. You should note the current market conditions in the area where the property is located, its age, and its current value. Another crucial factor to consider is the type of investment you are making. Please remember that you should only invest in a property if it fits your investment strategy and meets your financial objectives. Further, you may be better off investing in a portfolio of different investments rather than just one.
The Bottom Line
There are several decisions to be made during the home-buying process, but one of the very first is whether to buy an existing home or build a new one. From location to price to property taxes, there are several factors to consider prior to building or buying a home. However, one thing is certain — the UK housing market remains one of the most attractive in the world. Whether you decide to buy a newly built home or invest in an existing property, you’ll have the opportunity to benefit from the country’s strong economic environment and favourable demographics.
