Why Buy Now?
Is now the right time to buy your dream home?
The UK housing market is showing signs of a strong comeback, and there are several factors that suggest now could be a good time to buy a home. The housing market has had ongoing positivity, prices surging, interest rate dropping and therefore there is growth in house sales year on year. With our incentives and the opportunity for mortgage rate reductions, now is the perfect time to buy at Newchurch Meadows whilst you still have the chance.
Rising house prices and buyer confidence
House prices are on the rise again, with the fastest growth in two years. Average property prices are higher than a year ago in every region of England. The largest annual rise is in the North West, at 4.6%.This trend is expected to continue, driven by factors like:
- Lower mortgage rates: The Bank of England's recent interest rate cut and falling mortgage rates have made homeownership more affordable for many buyers. The Bank of England has confirmed that mortgage approval rates are at a two-year high.
- Strong wage growth: Rising wages are improving affordability. Amanda Bryden, Head of Mortgages, Halifax, said “This has boosted confidence among potential buyers, with the number of mortgages agreed up over 40% in the last year and now at their highest level since July 2022.”
- Increased demand: House sales are up significantly compared to last year, indicating a healthy demand in the market. “Data from Rightmove shows that the number of agreed sales is up by 25% on this point last year” says Richard Harrison, head of mortgages at Atom Bank
- Rent prices continue to grow: Rent prices are increasing due to increased demand, owning a property shields you from soaring rental prices making homeownership a more attractive option for long-term financial stability.
Upcoming Change to Stamp Duty
Stamp Duty, officially called Stamp Duty Land Tax (SDLT), is a tax you pay when you buy property or land in England and Northern Ireland. If you want to learn more about Stamp Duty, read here. In September 2022, the Government announced a temporary increase to the thresholds above which SDLT must be paid. This meant that more people fit into a band in which they would pay less SDLT, or none at all. The temporary threshold increase is due to end on 31 March 2025, meaning that any transaction which completes thereafter will be subject to the increased rates of Stamp Duty.
On 31 March 2025:
- The nil rate threshold which is currently £250,000 will return to the previous level of £125,000.
- The nil rate threshold for first time buyers which is currently £425,000 will return to the previous level of £300,000.
- The maximum purchase price for which First-Time Buyers Relief can be claimed is currently £625,000 and will return to the previous level of £500,000.
Buying before April 2025 therefore means you may have the opportunity to pay less Stamp Duty and more relief if you are a first-time buyer.
Homebuyer incentives with Own New
With Own New Rate Reducer available with Newchurch Meadows properties, mortgage rates below 1.63% are available. For example, you could now save up to £805* per month on mortgage payments available with Own New Rate Reducer on a Newchurch Meadows Home. Eliot Darcy, founder of Own New explains that “Monthly cost is a big issue for people, not just when interest rates are high, as it doesn’t look like rates are going to go down to where they used to be. It’s a problem for people and people want lower monthly payments, and ultimately, that’s what Rate Reducer does”. Read more about Own New’s Rate Reducer here and make your dream home a reality!
| *This is an example based on market interest rates, with an example Newchurch Meadows home price of £595,000 and an average mortgage term of 35 years. Assumes a 5% homebuilder incentive and a 2 year fix, with 75% LTV mortgage. Rates valid as of 15-10-2024 |
Now is a great time to buy a home for many reasons, including the final wave of Newchurch Meadows properties becoming available. With rising house prices, favourable mortgage rates, and the upcoming changes to Stamp Duty, now is an ideal time to invest in a Newchurch Meadows home. Take advantage of the current Stamp Duty rates and the Own New Rate Reducer program to reduce your overall costs and you can benefit from owning a home now in such strong market conditions. And if you buy a home now, you still have time to move in by Christmas!
If you need any more reasons to grab your home at our ideal Newchurch Meadows location whilst you can, read here!
While the market shows positive signs, it's crucial to do your own research and consider your individual circumstances before making a decision. Consulting a financial advisor can be helpful in making an informed choice.
