When is it time to get on the property ladder?

As potential buyers have eagerly kept an eye on the UK housing market and the fluctuations in mortgage rates and products, the current economic climate has left many people wondering when the time might be right to get on the property ladder.

With the Prime Minister unveiling a multibillion-pound rescue scheme to help banks increase their mortgage lending; indications to suggest that property owners and cash-rich first-time buyers may be returning to the market after being tempted by major discounts; and estate agents reporting an increase in the number of buyers making property enquiries in January, could now be the time to enter the housing market?

Potential buyers have watched as property prices have declined, with several being interested to see whether they might be able to secure a home with a low price tag, but as prices have continued to fall, it can be difficult to know the right time to buy. Add to this the issue of finding an affordable mortgage and the question of when to get on the property ladder becomes more complicated.

The good news is that, according to James Hyman of Cluttons estate agents, those first-time buyers who qualify for a mortgage deal should be able to achieve a good discount from vendors in the current climate. While there are various bargains to be had around the UK, he recommends that first-time buyers think about regions which have good transport links, period property and houses which are "not too generic".

New-build homes are also an option, and Mr. Hyman points out that there are good discounts available on some developments, however, he also explains that it is vital for purchasers to do their research before buying.

The temporary rise in the stamp duty zero-rate threshold to include properties worth up to £175,000 is another incentive for first-time buyers considering entering the market, particularly given the fact that after 2 September 2009, the zero-rate threshold will return to £125,000.

"The deadline could kick-start a revival in the first-time buyers' market just when prices could be flattening out," says David Hollingworth of the mortgage brokers, London & Country Mortgages.

Other experts have predicted that prices will fall further before the housing market stages a recovery.

Source: Times Online | Last updated: 23rd January 2009

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