Is Now A Good Time To Buy A House?
Nathan Stirk via Getty Images  After 18 months in a pandemic, and with property prices surging, you might be wondering if now is a good time to buy a house. Theres been a rush for everyone to complete their purchases before the stamp duty holiday  meaning no tax on the first 500,000 of properties  winds down. From June 30, the threshold dropped to 250,000 until September 30. And stamp duty thresholds will return to normal levels from October 1. Advertisement  Annual house price growth accelerated to 13.4% in June, marking the strongest growth since November 2004, according to the Nationwide Building Society. Across the UK, the average house price in June was 245,432, and prices were up by 0.7% month-on-month, following a 1.7% increase in May. Zoopla data also shows house prices have increased 4.7% over the past year, equating to an average uplift of 10,000 per property in the UK. We asked property and money experts. Advertisement  Robert Gardner, Nationwides chief economist, predicted: Underlying demand [for properties] is likely to soften around the turn of the year if unemployment rises as most analysts expect, as government support schemes wind down. But even this is far from assured. Even if the labour market does weaken, there is also scope for shifts in housing preferences as a result of the pandemic to continue to support activity for some time yet.  Gardners right. Just because the stamp duty holiday is being phased out, it doesnt mean the demand to move has vanished. Especially as more people are finding out theyll be able to work from home long-term  a move away from cities is more appealing without the commute five days a week. Tom Bill, head of UK residential research at Knight Frank, believes the end of the stamp duty holiday is a good thing for the property market, as it actually put some people off buying. A tax deadline there is no guarantee of meeting, together with stories of sealed bids, over-worked conveyancing solicitors and a shortage of removals vans will have deterred some  exacerbating already-low levels of supply and putting upwards pressure on prices, he says. Advertisement  Indeed, the second half of this year should see healthy levels of activity in the UK housing market. More balance between supply and demand should return in the second half of the year, Bill tells HuffPost UK. There will be more choice, he says, as more sellers list their properties as the stamp duty holiday winds down, which will put downwards pressure on prices. It will be a market where tax deadlines do not play a significant role and more seasonality and predictability will return, he adds. But bear in mind spring and autumn are normally the busiest times of the year for home buying. NurPhoto via Getty Images  Grainne Gilmore, head of research at Zoopla, says theres definitely still buyer demand, driven by a reassessment of home among many movers looking for more inside or outside space or to live in a different location, she says. The market is particularly buoyant at the moment, she adds. Were hearing from our estate agents that vendors are favouring buyers whose property is already under offer  or buyers who have no chain at all.  Jo Thornhill, mortgages expert at MoneySuperMarket, said there could be some downsides to jumping straight into a hot market as she puts it. You may want to consider biding your time rather than rushing into purchases. - Jo Thornhill, mortgages expert at MoneySuperMarket  Firstly, if youre actively looking then youre racing against time as the tax break comes to an end in September, she says. Another factor to consider is that house prices which are priced too highly could cause short term trouble. This is because when the rush dies down, you may discover that your property is worth less than what you originally paid for it. With these points in mind, you may want to consider biding your time rather than rushing into purchases. But, if you do choose to make the move then make sure youre acting with the bigger financial picture in mind.  Ultimately, says Thornhill, the best time to buy is when you can afford to and when your finances are in the best shape  having little debt and a good credit score helps. Consumers who are looking to borrow should explore all loan options and take advantage of any low-interest loans on the market, she says. Now is a good time to buy as interest rates are at historic lows so it would be wise to take advantage of this, whilst you can.  Advertisement  As Gilmore adds, in peak periods, theres likely to be more for sale but stiffer competition; and in quieter periods, there might be less for sale but competition might be more relaxed. Most buyers and movers will make a decision to purchase based on their personal circumstances and needs, while investors are more driven by localised market conditions, she says.