Is it The Right Time to Buy a House?

Some of the most common questions we have are, “Is now a good time to buy a house?” or “should I buy a house right now?”

The answer is that only you can make that decision – but we can help you understand whether there is a “best time” to buy a house, how to understand the changing housing market, whether house prices are expected to rise, and whether renting is cheaper. 

Continue reading to find out more today.

Understanding the changing housing market

There were speculations in May 2020 that COVID-19 may cause housing prices to drop, but the reality is that it has had the opposite affect. 

According to studies and published data, housing prices have risen by 9 to 11 percent over the past year. 

In basic terms, this is the result of greater demand for homes (a higher supply), fewer available homes, increased desire to leave cities for more space, reduced mortgage rates, and the stamp duty holiday (this ended in October 2021).

However, contrary to popular belief, this does not indicate an increase in the number of houses sold. According to HMRC, house sales have actually fallen, with the most recent figure being 2% lower than the previous year.

Are house prices expected to change in 2022?

Although no one can predict the future with certainty, many experts believe that the rise in house prices will slow. 

Because of the rising cost of living, many people may face affordability limitations, resulting in more houses becoming available and house prices falling in late 2022. 

However, it is important to note that demand for houses is still high at the time of writing, and house prices may stay unchanged throughout 2022.

When is the right time to buy a house?

There is not necessarily a “right time” to buy a house, especially at the moment. However, there are times when there are more houses available and times when there are fewer people looking to move or sell their home. 

For example, due to holiday delays, few people will begin the buying or selling process around Christmas. In comparison, the spring housing market can be quite active due to more people deciding to sell. 

Is renting cheaper than buying?

Other factors, such as the term of your mortgage, your deposit amount, the cost of the house, whether it needs work, and so on, can greatly influence whether renting is cheaper than buying. 

One of the most important differences is that when you buy a house, it is yours and an investment, whereas renting is just a place to live and is owned by someone else. 

Many landlords have raised rents in response to rising living costs. The average cost of renting in the UK increased by 2% in 2021 and is expected to rise further.

How will mortgage rates change in 2022

Mortgage rates are increasing in 2022. The Bank of England raised the interest rate from 0.75 percent to 1 percent in May 2022

When the Bank of England changes the base rate, it affects mortgages, credit cards, loans, and other financial products. 

Interest rates have been low since 2009 and remained that way until December 2021. Since then, they have continued to go up.

In terms of mortgage rates, as interest rates rise, mortgages become more expensive. Lenders will usually increase through higher monthly payments. 

This is one of the reasons fixed-rate mortgages are more popular; those with fixed rates are protected from rising costs for the duration of their fixed rate.

If you need some more information about the best mortgage option for you at the moment – get in touch today for our expert advice.

Is it the right time to buy a house?

As explained previously, the “best time” to buy a house is highly subjective to the individual. 

However, we’re here to talk through this with you and go over your options. 

We can assist you, whether you are just thinking about buying a house, viewing properties, or have made an offer.

Buying a house made easy with Sett Mortgages

Despite the fact that the housing market is extremely competitive and difficult to navigate, mortgages are becoming more expensive, and living costs are rising, buying a house is still possible. 

You are our top priority at Sett, and no matter what your situation is, we can explain your options and how to get started. 
Contact us today to discuss your options and begin your home-buying journey.


  • Elliott Benson

    Meet Elliott, a seasoned mortgage broker with over nine years of experience in property, and the founder of Sett Mortgages. With a background as a sales negotiator and mortgage services manager, he is a trusted professional with extensive knowledge in all things mortgages. Elliott's empathetic approach and clear communication style make him an approachable expert, decoding the complexities of mortgages for clients from diverse backgrounds. He stays up-to-date with the latest trends and regulations, offering cutting-edge solutions tailored to clients' needs. Committed to their financial well-being, he guides them through the mortgage process, ensuring countless successful and satisfied clients. Elliott's passion extends beyond his practice; he's a prolific writer, sharing his knowledge and insights in industry publications and blogs. His mission is to empower others with the information they need to make sound financial decisions.

    View all posts

Your home or property may be repossessed if you do not keep up repayments on your mortgage.