Help’s there for those hoping to buy a place

Laura Whateley, author of Money: A User’s Guide

If only someone could offer up a crystal ball. We assume there is a right answer, and estate agents will encourage you that there is – the housing market is booming at the moment, which means lots of supply – but we’re in a recession, and no one really knows whether prices are going to go down or up, and for how long.

Try and drown out the noise and look at your own situation, but factor in the following. If you are renting, and you are lucky enough to have cash for a deposit, you’ll probably find that monthly mortgage repayments are cheaper than the amount you’re paying out each month to a landlord, and your money will be going towards your own asset. The downside is, at the moment, mortgages for those with small deposits – under 15% – are thin on the ground, and the smaller your deposit the higher the interest you’ll pay. The stamp duty holiday is a huge incentive: from now until 31 March 2021, you don’t have to pay any tax on property under £500,000. You can save up to £15,000. This is pushing up prices and competition, however, which might mean you end up paying more overall. Also worth noting, first-time buyers don’t have to pay stamp duty on any property worth up to £300,000, even after March. Remember, though, that you are buying somewhere that you’ll be happy to live, it’s not just about nailing the best investment at a time when no one can predict the future.