Can you afford NOT to buy in 2018?

Can you afford NOT to buy in 2018?  Here are some positive reasons why 2018 should be the year to make that first purchase or move:

1-House price stability

Financial expert Rosie Murray-West has the following summary;

While economists have different views on the future direction of house prices, most seem to agree that house price growth will slow. Howard Archer, chief economist at IHS Markit says that house price gains over 2017 will be no more than three per cent, “and could well be less”. Economists have different views on the future direction of house prices;

Robert Gardner, chief economist at Nationwide, forecasts a two per cent rise, while the government’s own Office of Budgetary Responsibility forecasts that the rate of increase will drop from around six and a half per cent in 2017 to four per cent in 2018.

Experts give varying reasons for the slow growth. Mr Archer points to weakening consumer confidence, which means that many people will delay making major spending decisions. However, he points out that there is still a shortage of supply of housing, meaning that prices cannot fall far.

Mr Gardner says that rising inflation, caused partly by Britain’s preparations to leave the EU, would eat into consumer spending power and would push down prices.

“In our view a small rise in house prices of around 2 per cent is more likely than a decline over the course of 2017, since low borrowing costs and the dearth of homes on the market will continue to support prices,” he says.


Source – Rosie Murray-West. (published 02/05/2017)


2- Interest Rates

Interest rates are still at historical lows, with the recent interest rate increase the first we have seen in 10 years. Now is the time to secure low mortgage products and mortgage payments before any potential future increases occur.

Source: Colin Rowe. Money Advice Service. (published 02/11/2017)

3- Stamp Duty abolition

The recent budget saw the abolition of stamp duty for First Time Buyers up to a purchase price of £300,000. To help those in more expensive areas, the first £300,000 of the cost of a £500,000 purchase will be exempt of stamp duty. This is anticipated to assist 95% of all First Time Buyers with some 80% estimated to not pay any stamp duty at all, helping First Time Buyers and creating more interest for house movers.

Source:BBC News (published 22/11/2017)

4-Government schemes

Government schemes such as Help to Buy have been instrumental in assisting First Time Buyers to maximise their purchasing options. Since 2013, 134,558 borrowers have used the Help to Buy scheme to buy their first property.

Source: The Times (published 12/11/2017)

5-Lender schemes

Some lenders offer schemes where parents can deposit up to 10% towards their children’s property price in a bank account. They can receive interest on this and then withdraw and access the funds after 3 years. Enabling them to help their children with buying their first home without committing their funds to a property.

Source :


6-Borrowing schemes

Some lenders permit a parent’s income to be used towards the overall affordability of a mortgage, increasing the borrowing capability for a First Time Buyer.

Source: The Times (published 12/11/2017)

7-Choice of Products

There is an abundant choice of mortgage products available. As an example:

Products available with 5% deposit – over 140

Products available with 10% deposit – over 410

Products available with 15% deposit – over 840

Products available with 25% deposit – over 2100

Source : Iress mortgage sourcing system (date 06/12/2017)

If you would like to discuss any of the above areas in more detail and how your individual circumstances are affected, please do not hesitate to contact the team at Scarlett Financial Services on 01233 800 555 or

Please remember your home may be repossessed if you do not keep up repayments on your mortgage.

There will be a fee for mortgage advice. The amount will depend upon your circumstances but a typical fee would be £295, payable on completion of the process.

Scarlett Financial Services Ltd is an appointed representative of Personal Touch Financial Services Ltd which is authorised and regulated by the Financial Conduct Authority.

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