Is 2022 a good time to buy your first home?

The start of the New Year is often a time to set new goals, and for many thinking about buying their first home, it’s a natural opportunity to start the hunt for a property.


But with conflicting advice in the papers each week, it can be confusing to know when is a good time to buy. It’s likely the largest financial purchase of your life, so you want to get it right.


Here’s a few reasons why 2022 could be the right time for you to buy your first home.


  1. Interest rates remain historically low

Interest rates are one of the hot topics on the property scene, as changes in these rates can affect your mortgage re-payments.

Interest rates tells you how high the cost of borrowing is, so when it comes to your mortgage, it determines how much you are charged for the money you owe on your home.


In December 2021 the Bank of England announced that it would be increasing interest rates from 0.1% to 0.25%, making it slightly more expensive to borrow money. That being said, these rates still remain at a historic low – in the last fifteen years interest rates have been as high as 5.5%. Therefore, it’s still a good time to be taking out your first mortgage.


  1. Final year of Help to Buy

2022 marks the final full year of the current Help to Buy scheme, which expires in March 2023.

Help to Buy enables first-time buyers to purchase their first home with a 5% deposit, supported by a government equity of up to 20% (outside London) or 40% (in London). This loan is interest-free for the first five years, helping to keep your monthly payments down in your first few years as a homeowner.

The scheme is particularly popular for those with smaller savings or incomes, who otherwise might struggle to buy a home of a similar standard in the same location.


  1. The right time to buy new

Now could be the optimum time to buy a new build property, as the availability of re-sale homes remains unusually low. In November 2021, the average estate agency branch had only 20 homes on the market, marking a 20-year low.


With our breadth of new developments ranging from Warwick down to Kent, plus homes right across the capital, we are much more likely to be able to offer the home you are looking for. These range from one bedroom apartments to large family houses, with Help to Buy and Shared Ownership available, so you can find the right property to fit your budget.


Explore our full range of developments here.