The Coronavirus pandemic has resulted in the United Kingdom going into recession. This is the first time in over a decade and was announced in August after figures showed that, compared to the first three months of 2020, April – June showed the economy had shrunk by 20.4%.
Image Credit: https://www.flickr.com/photos/nanpalmero/15170517905
A recession will always affect different people in different ways and will undoubtedly have a negative impact on all businesses, not least the property market. But for some, it can work in their favor.
When to buy
For those people who planned on buying or selling a home this year, their plans have invariably been delayed and disrupted. But the recession may offer the potential to purchase a home at a reduced price and end up with a home that was unattainable before. However, there are lots of facts to consider, and house buyers should take their time to consume all the information on buying a house before making any decisions.
For first time buyers, now could potentially be a great time to get on the property ladder. Buyers have the power to negotiate a lower price and secure the home of their dreams, especially if the seller is in a hurry to sell. But with more unemployment, redundancies, and job uncertainty around, buyers need to make sure they can afford the repayments and consider the scenario of unemployment.
Image Credit: https://www.flickr.com/photos/foilman/2921978502
Sadly, some homes will be coming onto the market as a result of repossessions. The recession will result in a loss of income for some and people will find themselves in a position where they can’t afford to continue paying their mortgage. These homes will be put on the market by agencies working on behalf of the mortgage lender and offer a good buying opportunity, as a quick sale is often wanted.
If buying a property that requires work, it is always worth getting a quote for the work in advance of committing to the purchase, as it may end up costing you more in the long-run. Ensure you are in possession of the full facts and have all the information on buying a house you need before going ahead.
Do your homework when applying for a mortgage, and don’t feel you have to say yes to the first company that offers. A mortgage is a big financial decision that requires careful consideration.