Is now a good time to buy a home?

26/08/22
Family Homes Luxury Homes Advice

Headshot photo of Chris LLOYD An interview with Chris Lloyd, Associate at Knight Frank.

Before you start scrolling through property listings online, there are a few things to think about. Knowing what will have an impact on your search can give you a better chance of finding the perfect home for you. The big question to start with should be whether it’s the best time to be buying a new home at all.

Traditionally there are certain times of year that are more favourable for buyers, but the best time to buy can be different for everyone. It has a lot to do with your personal and professional circumstances, as well as your plans for the future.

We spoke to Chris Lloyd, an Associate at Knight Frank, to learn about some of the current home-buying trends, exactly what you need to consider if you want to get your ducks in a row, and his overall take on getting on ladder now.

Is now a good time to buy a new home?

In short, yes. As energy bills start to rise, a new home should be more cost effective as they’re built with modern materials. This means better insulation, more efficient heating systems and air tested environments to ensure warmth doesn’t leak.

The build quality and specification available on many new build homes is incredibly high. And, when buyers secure a property at an early stage, they may have the opportunity to certain design elements – I know this is something you offer at Cameron.

As for the financial side of things, the introduction of the government's mortgage guarantee scheme means now is a very exciting time to be jumping on the property ladder. The scheme gives first time buyers the chance to lay down as little as 5% deposit.

What are the key trends that have you noticed in the new homes market over the last twelve months?

Across the Cotswolds & Warwickshire region, the race for space has been the most common trend we have seen. So demand for homes with generous garden spaces has certainly increased since the pandemic. Also, as remote working becomes commonplace, demand for either a home office or studio space has also increased.

We’ve also found that those purchasing off-plan have found the ability to make their own choices attractive. Being able to choose exactly how your home is handed over is a huge pull for many buyers – an opportunity you simply don’t get when buying a re-sale property.

What is the market like for first time buyers at the moment?

While interest rates are on the rise, there’s a real demand for first homes, so first-time buyers are keen to lock in an affordable rate now before mortgage rates rise to a level where they could be at risk of being priced out.

Are there are any seasonal trends you see in the market year on year? (or have these ‘trends’ become less relevant due to the unprecedented times we are living in)?

With buyers now starting their search online, it’s easier to understand the peaks and troughs of when people are looking. Whilst the internet has not completely done away with seasonal trends it has certainly reduced them. We would still say spring is the busiest time but not by as much as it used to be.

Has there been a change in mortgage rates over the past year?

The Bank of England has recently opted to raise the base interest rate to 1.75%, which is its sixth consecutive increase since December 2021. Future rises are now also a matter of “when” and not “if”. The Bank of England’s own analysists suggest the rate will rise to 2% this year before hitting 2.75% in 2023. Another reminder that there’s no time like the present and now would be a good time to get on the ladder.

What tips would give for anyone looking to buy in the next 6-12 months?

If you’re looking to borrow then now is a really good time to lock in a low mortgage rate. If you need to sell, then I’d suggest getting on the market sooner rather than later. That way when the perfect property does come along, you’re in a position to move on it.
It’s also important to ensure you are clear on your financial position in terms of affordability, so speaking with a mortgage advisor at an early stage is a must.

What are the main factors to consider when buying a new home?

Check that the developer has a reputable portfolio and history of delivering a well-built product. Cameron is a great example of a developer who understand the needs of buyers – with a history of building stunning new homes in amazing locations.

Also, before making your reservation, ensure you have the relevant funds accessible i.e. your reservation fee and deposit. And always make sure you instruct your solicitors promptly and pay for searches, these can sometimes take a while to return and will delay your purchase.

If you’re considering buying a new home, our sales team, our sales team are here to help. We make sure each and every one of our customers has a positive and exciting experience as they embark on their new home journey. We understand the home-buying process and will provide guidance and support – from reserving to move in day.

Our mission is to build beautiful homes in great locations. Places that people will fall in love with. So if you are thinking about a move, why not explore our developments and the houses we have for sale?