Three reasons why now is a great time for first-time buyers (with tracked price hikes in Peckham)
Published: 05/04/2019 By Jane RobathanLet’s look at timing your first purchase so you don’t buy during a price peak, because that’s really your biggest concern.
Right now the market presents a fantastic opportunity. There are three simple, yet important reasons why.
Lending is still cheap
Interest rates are still historically low. While we don’t know when the Bank of England will raise rates, we do know that the only way they can go is up. They will only stay put if the UK is economically and politically confident. One word: Brexit.
You have more choice
It’s a buyers’ market. This trend is defined as there being more properties on the market than usual, giving you more choice. You are more likely to get the home you want.
Prices are on your side
Everyone is now referring to 2016-2017 as being London’s price peak. In two of our core areas (SE22 and SE15) we’ve been watching price reductions across the property portals as owners adjust to the market. The falls in asking prices (not in actual sold prices) are between 5-10% but in reality, are happening to properties that were over-valued in the first place.
What has really happened is the market has stopped rising at an extraordinary rate. Prices in Peckham for instance, have been rising, just at a slower rate than before. But over the last year, they've remained static. This means that if you buy now, you won't be buying at an over-inflated price.
Let's check this out by looking at sold prices on Rightmove, who draw data from the Land Registry. Being an autonomous data set, it’s sensible to use Land Registry figures.
Over the last 7-years, prices in Peckham have risen 94%
Between December 2011-2013 prices rose 36%
From January to December over the last three years they've looked like this: in 2015 they fell -3.7%, in 2016 they rose 21.6% and in 2017 they rose 9.7%, on average.
Over the last two years, they’ve risen 11%
From January 2018 to December 2018, Peckham’s average price has barely changed from £549,076 to £556,021
If you’re interested in this kind of thing, here’s a link to the tool. You can play around and see the peaks and troughs in any postcode going back to January 2000. The only bugbear is that Land Registry data has a 3-month lag, in that sales completed today will take 2/3-months to be absorbed into the system and published. But it’s the cleanest set of figures to use.
We can help you pinpoint up-and-coming areas and even tout the streets you’re interested in. If you’d like any help, drop me a line.