Current housing market conditions 

HomeBuy - information about current housing market conditions


The current housing market makes people understandably concerned about whether now is a good time to buy a home.  The following may help you make your decisions:

• When you apply to Moat for HomeBuy we will carry out a careful assessment of your present financial position and whether you are likely to be able to afford the monthly payments associated with buying a home.  We do this on the basis of how your payments relate to your net income.  We will refuse people who we think will struggle financially as home owners.

• You should buy a home because you think it will be a place where you would like to live and will be yours for as long as you want it.  Although over a period of time prices are likely to rise again, the investment potential of the property should always be a secondary consideration.

• The housing market is like all other parts of the UK economy.  It goes through a cycle with highs and lows.  Over time, if you remain a home owner, you are likely to gain financially from house price rises, but this cannot be guaranteed and most economists think house prices could fall further in the next 6 - 12 months, possibly longer than that.

• In the short term, therefore, if you take out a mortgage of 90 - 100% of the property value, there is a risk of negative equity.  History suggests, though, that over time the market rises because of overall economic growth and inflation.

• Recent forecasts from the respected economics consultancy, Oxford Economics, for the National Housing Federation suggest house prices may start to recover from 2010 or 2011.  The pace of the recovery will be influenced by the state of the general economy.

• It is worth remembering that the housing market tends to move as a whole.  If you stay a home owner, no matter when you move you will be subject to the market conditions at that time, ie if your home rises in value, the one you intend to buy next will also be higher priced than it was, and vice versa.

• Almost no one can time their entry into the market perfectly.  The most important thing if you believe home ownership is right for you is to think about your personal goals for the medium and long term.

This information is provided by Moat as guidance to people wishing to purchase through HomeBuy.  Please make sure you receive professional advice from an independent mortgage adviser and legal advice from a solicitor prior to purchasing a new home.  We may update or change this information at any time.


Your home is at risk if you do not keep up rent and mortgage repayments or payments on other loans secured on it.  Please note that the value of properties can go down as well as up.

Page last updated 16/10/08