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Should first-time buyers wait until 2024?

New advice for first time buyers has emerged stating that it would be wise to wait until 2024 to take advantage of lower prices before entering the market.

  • Research suggests house prices could drop by up to 10% over the next year
  • Many house-hunters are now sitting tight for a better buying opportunity

Research undertaken by property tech firm iPlace Global has led to the prediction that house prices will begin to drop by up to 10% over the course of the next 12 months alongside mortgage rates ‘levelling off’ by the time 2024 arrives.

This is in stark contrast to the current situation surrounding properties in the UK, which now have an average price of just over £370,000.

The average fixed-rate mortgage levels do not make for better reading either, with 6.46% for two years and 6.32% for five years.

It’s clear the recent mini-budget has had an extremely detrimental impact on the property market, which is also now manifesting itself as a huge problem to landlords.

It’s believed that over a quarter of all landlords are looking to sell their buy-to-let properties due to rapidly elevating costs, which has the additional knock-on effect of making rental prices even more expensive.

As we move towards winter, it’s apparent that homeowners, renters and landlords are all struggling to cope with the intense volatility of the market as both property and mortgage prices climb to eye watering levels.

The appointment of Rishi Sunak as PM will gradually bring some much-needed stability to the country as a whole, although the popular opinion suggests too much damage has been done for the UK to feel any benefit of this stability in the short to medium term.

This means that first time buyers will likely have to sit on their hands until 2024 in line with the advice now being presented, which is easier said than done if they’re facing the prospect of their rent potentially increasing.

Forget 2023 – 2024 can’t come soon enough for some.

Written by Neil Coleman is an independent platform and information service that aims to provide you with the tools you need to make smarter financial decisions. While we are independent, the offers that appear on this site are provided by companies from which receives compensation, though we never advertise or promote services or companies that we do not ethically support.

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