Have house prices fallen?
It’s difficult to say. Before the UK was placed on lockdown house prices were growing, then due to the property market being paused, these prices have simply remained the same. There is little evidence to suggest that house prices have fallen after lockdown, purely because the property market has only just been able to reopen so there is little data to go from so far.
The current answer to this question is NO, house prices have not fallen.
Will house prices fall?
There is a possibility that house prices will drop post-lockdown, but not necessarily. In our opinion, there may not be a HUGE impact on house prices after lockdown. Many people have been using their time at home wisely to renovate their houses and get them ready to be put on the market. Now that estate agents are back up and running, several people are ready to make their move, and demand is very strong! It is very hard to tell.
I’m a First Time Buyer, is now a good time for me to buy?
At present, mortgage rates are brilliant and we have many first-time buyers moving up a step on the property ladder! However, if house prices do begin to crash, mortgage lenders may become hesitant in offering high-loan mortgages. Fear not – the result of this would purely mean that first time buyers will just require a higher deposit.
This may not be good news for those who can’t afford a huge deposit as they could find it more difficult to get onto the property ladder, however, those who are in a position to buy with a good deposit could reap the rewards! It could even mean that your monthly repayments on your mortgage equate to less than most people’s monthly rent payments.
So – as mentioned above, it is hard to predict where the property market is going. There is no evidence of a market crash as of yet, and there are plenty of people still keen to buy and sell. We expect that as more data is obtained, answers will be more certain.