homes with for sale signs
Is now the right time to buy? (Picture: PA)

The UK officially entered the largest recession on record after the coronavirus pandemic triggered a nationwide lockdown that the country is still slowly trying to come out of.

The country’s first recession in 11 years was declared on Wednesday after the economy shrank 20.4% from April to June when compared with the first three months of the year.

The health of the economy has a far-reaching impact on all our lives, especially those looking to make big financial changes.

That’s why we talked to an expert to figure out whether now it is the right time to buy a new house.

Is now a good time to buy a house?

Depending on your situation and ability to assess a bargain, a silver lining to the recession could mean that you’ll find it easier to buy a cheaper house than you normally might.

Ross Counsell, Chartered Surveyor and Director at Good Move, tells us how a recession can actually make buying a house easier, especially for first-time buyers.

He says: ‘For anyone looking to buy a home during the recession, there’s a lot to weigh up before making the decision.

‘Because recessions lead to job and income losses, there are consequently less people looking to invest in something as expensive as a new home, meaning house prices generally fall during a recession. Although this can cause issues for sellers, lower prices mean it can be easier for people to get on the property ladder and buy a home, especially first-time buyers.

He adds: ‘You may also find current homeowners are willing to lower their asking price to sell their home as quickly as possible, which also means you can get a great price on a property during a recession.

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‘Many homeowners may also do a short sale to get out from under their mortgage and some properties will sell through foreclosure, which altogether makes them cheaper too. Again, this is a great draw for anyone looking to get on to the property market and buy a property for less than it would be before a recession.’

However Ross also warns that you should be careful with bargain houses, as all might not be as it seems.

He says: ‘Although it may seem like you’re getting a bargain, not every home selling for cheaper will be a good deal.

‘Generally, the lowest-priced homes will require many repairs that will cost buyers in the long run, so be wary of this when looking to buy a cheaper home in the recession as you may end up spending thousands on big repairs later on.’  

He adds that it’s important to look before you leap, saying: ‘Ultimately, if you’re looking to buy a home in the recession, we’d advise thoroughly checking out the property before you commit to it, and ask important questions to determine how much work the property needs.

‘Don’t get swept away in a low house price or jump at the first rate a mortgage lender offers. This is a big decision and one that needs to be thought about carefully.’

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