This could be the best time to buy a house in Manchester

We are yet to see the full economic impact of the Covid-19 pandemic, but now might just be the perfect opportunity to get on the housing ladder. 

A lot of people struggle to get on the property ladder in the UK, and it has become increasingly more difficult for younger people – although many young adults can get help from government schemes, they usually depend on financial help from parents and other family members. 

The likelihood of an economic crash due to coronavirus is high. Last week a 2% drop in GDP signified the largest fall in growth since the 2008 financial crisis. 

Interest rates are also lower than they have ever been in the Bank of England’s 325 year history. When interest rates are low, it makes saving money less attractive and borrowing money such as that for a mortgage a lot more attractive to consumers and businesses.  

Due to Covid-19, we currently have 7.5 million people in the government’s furlough scheme which is costing the economy £14 billion a month. There is also 1.5 million people unemployed.

As such, consumer confidence has been drastically reduced, lowering the amount of consumer spending – whether that be because they are currently experiencing high levels of job insecurity or are currently furloughed.

Adding to this is the closure of many businesses on the high street. It is also expected that wages are likely to remain the same rather than increase for a while now. 

So with all this in mind, it’s looking like we are heading for another recession, if we’re not already in the early stages of one. 

However, there may just be a (tiny) silver lining to it all – a drop in house prices. It happens in every economic crash, house prices fall, demand drops and the market in general seeds a dip.

As the COVID-19 pandemic is completely unprecedented it is uncertain how long the house prices will remain low for, and most professionals don’t know when the economy will recover after lockdown. 

But with mortgage and interest rates currently being as low as they are, it is working out to be the best time to buy a property. 

If you have the funds for a deposit and a completely secure job, now could be the perfect time to get on the property ladder. 

It is expected that towards the end of summer fewer people will be on furlough and many people will start going back to work. This will see the beginnings of the markets settling or have a slight dip, and according to Kaytons Estate Agents, making it the perfect time to buy if you have your finances in place. 

Gagan Khurana, owner of Kaytons,  told Manchester’s Finest: “Now, with the mortgage rates and interest rates being at an all time low, it is probably the best time to buy.

“Having been in lockdown for almost two months now, there will be a busy peak for the next two months but towards the end of the Summer when people start going back to work and employees are not offered a furlough option, this is when the market will start to settle or have a slight dip and so for a first time buyer, assuming they have their finances in place, that is the time to buy.”

The rate at which prices are falling is expected to slow, with some reports stating that the biggest decline in house prices has already happened between March and May. 

So with all this in mind, should you have the capacity to do so now might just well be the perfect time to start looking at getting on the property ladder! Be quick though, this window of opportunity is expected to be small with prices increasing back up again next year.