This is the question many people are asking right now, and the answer depends on your circumstances.
We pride ourselves on our ability to provide objective, fact-based information on the Milton Keynes property market so potential Milton Keynes house sellers, landlords and buyerscan make the best decision for themselves.
Our role is to educate the potential Milton Keynes house sellers, landlords and buyers and to provide them with the best possible information available, not to convince them to do something they don’t want to do.
To answer that big question in the title of the article (is now a good time to buy a Milton Keynes home?), it comes down to three things.
1.How much will you get for your Milton Keynes home when you sell it?
2.How much will you have to pay for your new home?
3.How much will that move cost you in ongoing monthly mortgage payments?
To answer points 1 and 2 correctly, we need to address point 3, which relates to interest rates.
The click-bait newspapers and websites are pushing messages to potential sellers and buyers towards the top end of the sensationalised scale. We prefer to define what is happening, i.e. the reality.
On the face of it, it doesn't look good.
The average 5-year fixed rate mortgage has risen from 2.11% at the beginning of January this year to 6.21% in early November.
Yet even though the Bank of England increased the base rate by 0.75% on the 3rd of November, the average 5-year fixed rate mortgage dropped by 0.22% between the 3rd week in October and bonfire night. As interest rates go up, mortgage rates are coming down even though interest rates are projected to increase to 4.5% by the autumn of 2023.
So, why did the Bank of England mention in the first week of November that the UK is facing a two-year recession? Some might think this controversial, yet the Bank of England wants a recession as it will aid in reducing inflation. It’s as plain and simple as that!
Instead of relying purely on interest rates to reduce inflation, the Bank of England is hoping if we go into some form of shallow recession, it will not need to increase interest rates much above the anticipated 4.5%.
However, whether it's interest rates or a recession, both will slow the number of home sales in Milton Keynes and will indirectly affect Milton Keynes house prices.
So will Milton Keynes house prices drop? By how much and what money will it save you if you wait?
We have spoken recently in our property blogs about the Milton Keynes property market, and the prices that will be achieved for homes in late 2023/early 2024 will be between 5% to 10% lower than what is being achieved today. There is no point in repeating why (message us if you want those articles), but in essence, increasing mortgage rates, inflation and affordability will mean the price people can pay for a Milton Keynes home will be curtailed because of those factors. Let's assume a reduction of 10% in Milton Keynes house prices.
Around 81 in 100 existing homeowners are buyers. When they sell their home, they almost always move upmarket regarding accommodation and location. Hence, they will pay more for the home they buy than the property they sell.
So, if you are in Milton Keynes and live in a 2-bed house (average value £269,954) and want to buy a 3-bed house (average value £362,511), the difference between both would be £92,557.
If Milton Keynes house prices dropped by 10% in a couple of years, that £269,954 2-bed house would drop to £242,959, and that £362,511 3-bed house would drop to £326,260, meaning the gap would drop to £83,301. Thus, saving the home buyer £9,256.
So, should they wait?
Yes, until you look at the monthly ongoing mortgage payments.
Assuming our Milton Keynes homeowner has an existing mortgage of £150,000 and added the difference of moving up the property ladder to the mortgage. If our Milton Keynes home mover moved now, their mortgage payments would be £1,277.25 per month (assuming a 35-year mortgage on a 5-year fixed rate at 5.34% with First Direct).
The other scenario would be if our Milton Keynes buyer waited a couple of years for Milton Keynes house prices to drop 10% (to save the £9,256 mentioned above) to make a move.
Everyone acknowledges interest rates will rise in the next two years, so the monthly mortgage payments when they move (even though they are borrowing less) would be £1,521.65 per month (based on a 5-year fixed mortgage being 7.19% in 2 years).
By waiting 2 years, it will cost the Milton Keynes homeowner £244.40 extra per month in interest payments or £14,664.11 in the 5-year mortgage term.
The point is that because interest rates are forecast togo higherin the next couple of years, this provides potential Milton Keynes buyers with the prospect of locking in their monthly housing expenses by moving now.
By buying now, it hedges against rising interest rates; consequently, your monthly mortgage payments are going to be higher. It offers an opportunity, through re-mortgaging, to lower your mortgage costs should interest rates fall.
What about Milton Keynes first-time buyers?
We wrote an article on the Milton Keynes property market only a few weeks ago. Even when we looked at house prices dropping by 18% in two years (because in the 1988 house price crash, the market dropped by 20% and 17% by 2008), the savings made on the purchase price were blown out of the water with the two extra years of rental payments, the higher deposit and higher interest payments.
The actual crisis in the property market today is the rocketing rental rates.
Whilst a fixed-rate mortgage locks in your monthly housing costs, rental rates are rocketing upwards, and a tenant today can realistically expect higher monthly costs in the coming few years.
Though most of the press generally focuses on the monetary aspects of buying a home, there are also choices on homeownership that are not exclusively based on financial decisions.
Why are you considering buying a Milton Keynes home?
Buying a Milton Keynes home is very personal and predominantly driven byyour life eventslike divorce/marriage, a job move, a new addition to the family, elderly parents moving in etc. These are often the influences that drive the decision to buy (or not buy) a home.
Homeownership has always been a foundation stone of the British dream.
Homeownership offers control and a sense of security that renting simply cannot provide.
The doom-monger headline-grabbing newspapers often overlook these non-economic factors affecting the desire of a potential home buyer.
The one important thing from the last few years since the first lockdown in 2020 is that people still want to own their own homes.
They still want to have their ‘castle’, to pull up the drawbridge when things get tough, a place that they and their family can call their own. Never forget that homeownership is much more than house prices and graphs; it's about the ‘Englishman’s home is his castle’ dream.
Let us remember most people in the UK have been able to build and grow their family wealth through homeownership. That is why we like to provide the best information on the Milton Keynes property market so you can make the best decision for yourself and your family. Please drop us a line if you wish to pick our brain’s on anything discussed in this article.
FAQs
Is Milton Keynes a good place to buy property? ›
More than any other purpose-built conurbation, Milton Keynes enjoys the very best of both worlds. Located in the rolling countryside of historic Buckinghamshire, it's a neat, picturesque town, separate from London's sprawl, yet still only a 30-minute commute away from Tube Fare Zone 1 (Euston).
Are house prices falling in Milton Keynes? ›The rise contributes to the longer-term trend, which has seen property prices in the area grow by 17.4% over the last year.
Will house prices go up in Milton Keynes? ›and what money will it save you if you wait? We have spoken recently in our property blogs about the Milton Keynes property market, and the prices that will be achieved for homes in late 2023/early 2024 will be between 5% to 10% lower than what is being achieved today.
Is it a good time to buy a house in the UK right now? ›“Most areas recorded small price falls in Q4 2022 as buyers negotiated harder on price. Moreover, the discounts to asking prices to achieve a sale widened quickly at the end of 2022,” says Zoopla. The gap between asking and achieved prices is currently stable at between 3 and 4%, and there is no sign of it widening.
Why are people moving to Milton Keynes? ›For every uniquely built area, there is picturesque nature, giving Milton Keynes residents a truly best of both environment. There are many beautiful lakes to enjoy in locations such as Willen, Caldecott and Furzton as well as large scale parks, woods and walks in neighbouring Woburn, Bow Brickhill and Ampthill.
What areas to avoid in Milton Keynes 2022? ›Areas to avoid are Coffee Hall, Tinkers Bridge, Fishermead, Oldbrook, Eaglestone and Lakes Estate. Other than that it's pretty good! 7.
Will UK house prices fall in 2023? ›Latest Updates. Nationwide forecast in December that house prices would fall 5% in 2023. House prices in January were 1.1% higher than a year earlier, Nationwide said, the smallest year-on-year increase since June 2020 and down from a 2.8% increase in December. Economists polled by Reuters had expected a rise of 1.9%.
Will UK housing market slow down in 2022? ›The UK House Price Index
The latest data currently available relates to November 2022. It showed the average house price in the UK fell by 0.3% in November 2022, having risen slightly in October 2022, with year-on-year growth of 10.3%.
Both Lloyds and Halifax expect house prices to fall 8% in 2023, while Nationwide and online estate agent Zoopla are predicting falls of 5%. The Office for Budget Responsibility (OBR) expects prices to fall 9% over the next two years.
Will home rates go down in 2023? ›National Association of Realtors (NAR) senior economist and director of forecasting, Nadia Evangelou: “If inflation continues to slow down—and this is what we expect for 2023—mortgage rates may stabilize below 6% in 2023.”
Will property prices keep rising in 2022? ›
The Office for Budget Responsibility (OBR) said it expects house prices to fall for the next two years, predicting a drop of 9% between now and autumn 2024. The cost of a mortgage, however, is likely to remain high.
Will house prices increase in the next 5 years? ›House price predictions for 2023/2024
Estate agents Savills expects the base rate to rise to 4% in early 2023 and remain there until mid-2024 before starting to fall back. Capital Economics predicts the base rate to rise to 5% next year before dropping to 3.25% in 2024.
"We expect prices to decline 10% over the next two years as budgets get recalculated." Nationwide's latest figures suggest mortgages are less affordable in all regions compared with 2021, with the cost of servicing the typical mortgage as a share of take-home pay at or above the long-run average.
Are UK house prices due to fall? ›Prices forecast to slump 8% in 2023
They dropped by 1.5% in December, following a 2.4% fall in November. The annual rate of growth more than halved, from 4.6% to 2%. The cost of a typical UK home last month stood at £281,272, down from £285,425 the previous month.
Is Buying A Home During A Recession Worth It? In general, buying a home during a recession will get you a better deal. The number of foreclosures or owners who have to sell to stay afloat increases, typically leading to more homes available on the market and lower home prices.
Is Milton Keynes good place to live 2022? ›According to research, Milton Keynes is the fifth safest place to live in the UK, making it a great option for family buyers and renters.
Should I live in Milton Keynes? ›Property Detective found Milton Keynes was one of the best areas in the country to raise a family. Their research focussed on schools, nurseries, parks, playgrounds, maternity units, NCT groups, chemists and shops. Finding an excellent school is easy with Ofsted judging 30 of them outstanding and 66 good.
Is it nice to live in Milton Keynes? ›Among families, Milton Keynes is one of the happiest places to live and work in the UK—no small feat considering the sheer volume of towns and cities in England alone.
Is crime high in Milton Keynes? ›Annual crime rate in Milton Keynes postcode area is 40.1, i.e. 40.1 crimes reported per annum per 1000 workday people. Compared to the national crime rate, Milton Keynes's crime rate is at 107%. Violent crime makes up 37.6% of all crimes reported in the postcode area.
How rough is Milton Keynes? ›Milton Keynes 2023 Crime Scorecard
As of 2023, the crime rate in Milton Keynes is 30% higher than the South East and 22% higher than the England, Wales & Northern Ireland overall figure.
Is it expensive to live in Milton Keynes? ›
Summary about cost of living in Milton Keynes, United Kingdom: Family of four estimated monthly costs are 3,023.2$ (2,450.2£) without rent. A single person estimated monthly costs are 881.6$ (714.5£) without rent. Milton Keynes is 31.2% less expensive than Seattle (without rent).
Is it better to wait until 2023 to buy a house? ›Housing prices are still high, real estate inventory is still limited, and mortgage rates are the highest they've been in several decades. If you wait until 2023 to buy a home, these factors may or may not improve. But they're unlikely to get much worse. Sure, mortgage rates could rise a little in 2023.
Will house prices go down in 2024? ›"We expect house prices to decline modestly, but the downside risks are elevated," write Freddie Mac economists. Mortgage Bankers Association: The trade group's latest forecast has U.S. home prices, as measured by the FHFA US House Price Index, falling 0.6% in 2023 and another 1.2% dip in 2024.
Will London house prices rise in next 5 years? ›According to the forecast, house prices in London are expected to fall substantially in 2023 as a result of the increased borrowing costs and inflation. Mortgage rates reached record-low in 2020 and 2021, but have started to rise as a response to inflation.
What will the housing market look like in 2023 UK? ›UK Finance anticipates that the number of house purchases will fall by 21% in 2023 to just over 1 million, while lending by banks and building societies will return to pre-Covid levels.
Is the housing bubble about to burst? ›While the housing market on a national scale has seen prices decline in 2022 amid rising interest rates, experts are noting that a sudden and abrupt housing market crash is unlikely, based on current market conditions.
How far will house prices fall? ›House prices will slump in 2023 as high mortgage rates crunch buyers' budgets and bring sales to a 12-year low, analysts have warned. From peak to trough, values will fall by 12pc, according to both Capital Economics and Oxford Economics research consultancies.
What will house prices be in 2023? ›The widening cost gap between owning and renting will put homeownership out of reach for many first-time buyers and quash the number of sales in 2023. This will cause house prices in the capital to tumble by as much as 12.5 per cent, experts predict.
Will mortgage rates go down in the next 5 years? ›Mortgage rates are likely to fall even farther in 2023, housing economists predict. Greg McBride, CFA, Bankrate chief financial analyst, expects 30-year mortgage rates to drop to 5.25 percent by the end of 2023.
What will mortgage rates be in August 2023? ›All the signs are that this will continue next year. Most experts expect the base rate to settle around 4% to 4.5% by the end of 2023 and top fixed mortgage deals to fall to just under 4% within 18 months."
How high will interest rates go in 2023? ›
Fed officials projected in their December economic estimates that they would probably raise interest rates to a range of 5 to 5.25 percent in 2023, implying two more quarter-point rate moves after the expected move on Wednesday.
Will it be a good time to buy a house in 2022? ›As 2022 begins to wrap up, borrowers looking to buy a home may find it's their best opportunity of the year. Mortgage rates have climbed overall, but home buying conditions generally ease up in fall and winter as demand fades and sellers become more flexible.
Why is 2022 a good time to buy a house? ›Home prices have soared since 2020 and mortgage rates have been rising steadily in 2022 — the average rate for a 30-year fixed mortgage was about 3% in January 2022, but today is about 7.08%. With inflation eating into earning power, real household incomes have been stagnant since 2019.
Is 2022 a good year to buy property? ›Unsurprisingly, many home buyers are left wondering: Is buying a house still worth it in 2022? The short answer is yes. If you're financially ready, buying a house is still worth it — even in the current market. Experts largely agree that buying and owning a home remains a smarter financial move than renting for many.
What will house prices be like in 2025? ›The median home price will rise to $385,800, an increase of only 0.3% from this year's level ($384,500), while home sales will fall 6.8% compared to 2022's level (5.13 million). There's a chance that half of the country may witness price increases, while the other half will see price drops.
What is the outlook for UK house prices? ›Prices forecast to slump 8% in 2023
They dropped by 1.5% in December, following a 2.4% fall in November. The annual rate of growth more than halved, from 4.6% to 2%. The cost of a typical UK home last month stood at £281,272, down from £285,425 the previous month.
Then the OBR suggests that property prices will start to rise again at a rate slightly faster than people's incomes - up by 1.2% in 2025, 3% in 2026 and 3.5% in 2027.
What is happening to UK house prices in 2022? ›The annual percentage change for average UK house prices was 12.6% in the year to October 2022, compared with 9.9% in the year to September 2022 and 12.9% in the year to August 2022.
Will house prices drop if we go into a recession UK? ›While it is by no means guaranteed, property prices tend to fall during recessions. In the last major recession in 2008, they tumbled by 15%, according to the Land Registry, before bouncing back fairly rapidly. There are several reasons why the UK housing market struggles during these periods of economic turmoil.
Are houses overpriced right now UK? ›The average house price in the UK is now at £258,297, according to Nationwide, which is a 3.2% drop from the market's peak in August last year. “The start of 2023 saw a further slowing in annual house price growth to 1.1%, from 2.8% in December.
Will house prices drop in 2024 UK? ›
After a period of rapid house price rises over the past two years, property values have recently started to fall and are expected to fall further in 2023 and 2024. Halifax's latest House Price Index (HPI) revealed that average house prices dropped by 2.3% in November – the most significant since 2008.
Will there be a housing crash in 2022? ›As mentioned before, a recent report released by TD Bank indicates that real estate prices could fall 20–25% by the end of 2022, and the downturn will likely continue into 2023.
Is it better to have cash or property in a recession? ›In addition, during recessions, people with access to cash are in a better position to take advantage of investment opportunities that can significantly improve their finances long-term.
Will a recession mean a drop in house prices? ›The biggest risk potential homebuyers face during a recession is losing their employment. If, however, employment remains steady, recessions typically help buyers enter the housing market, since property prices generally drop.
Is Milton Keynes a wealthy area? ›While some houses cost over a million pounds, you will be pleased to learn that Milton Keynes is generally an affordable area. Zoopla suggests that the average price of homes in Milton Keynes is £341,734, about £40,000 lower than the average price for the South East region.
Is Milton Keynes a good area to live? ›Is Milton Keynes a good place to live? Milton Keynes was named the fourth best place for under-30s to live and work, based on average salaries, rents, property prices, commuting costs and quality of life. Its superb transport links, in particular, make the town a great choice for those who work in London.
Which UK city is best for property investment? ›- Birmingham. £202,400. Average Property Price. ...
- Derby. £180,966. Average Property Price. ...
- Leeds. £205,600. Average Property Price. ...
- Manchester. £215,700. Average Property Price. ...
- Sheffield. £169,100. ...
- Liverpool. £152,300. ...
- Newcastle. £147,200. ...
- Leicester. £223,800.
Whether born or residing in Milton Keynes – the area obviously boasts a whole host of MK Dons footballers, including England and Spurs footballing star Dele Ali, Olympian Greg Rutherford, Heavyweight boxer Matt Legg, Professional Golfer Ian Poulter and Professional British Racecar Driver Kazeem Manzur - to name a few.
Where is the cheapest place to live in Milton Keynes? ›Some of the cheapest residential streets in Milton Keynes include Mahler Close,in Browns Wood, Plantain Court, in Walnut Tree and Paynes Drive, Loughton. But the streets with cheaper housing in the Milton Keynes Postcodes often tend to contain smaller flats and studios which would have a lower value.
Do any famous people live in Milton Keynes? ›Clare Nasir (born 1970), meteorologist and weather forecaster for ITC London comes from Milton Keynes. In 2010, she also released a fitness DVD. Jack Trevor Story (born 1917), novelist was born in Hertford but he lives in Milton Keynes since 1970s.
What are house prices expected to do in 2023? ›
The widening cost gap between owning and renting will put homeownership out of reach for many first-time buyers and quash the number of sales in 2023. This will cause house prices in the capital to tumble by as much as 12.5 per cent, experts predict.
Where is the cheapest and nicest place to live in UK? ›Stirling
Not only is it one of the most affordable UK cities (Halifax 'UK's Most Affordable City in 2021), it's also been voted as one of the happiest (Rightmove Happy at Home Index 2021).
1. City of Edinburgh. Topping the pile of the UK's best places to live is the City of Edinburgh, with an impressive average location rating of 4.72 out of 5. The county of 'City Edinburgh' is one of the most desirable places to live in Britain.
What is the best area to live in Milton Keynes? ›Willen. This is thought of as one of the best places to live in Milton Keynes.
Why is Milton Keynes so expensive? ›Milton Keynes house prices have risen on the back of several things, including changes in how people see their homes and how they live and work (i.e. working from home), a lack of properties on the market and government tax incentives (the stamp duty holiday in 2020).
How white is Milton Keynes? ›About 72% of people identified as white in Milton Keynes in 2021, down from 80% in the previous census. Additionally, 62% identified as white English, Welsh, Scottish, Northern Irish or British – falling from 74% in the previous census.