Deciding if you need to buy or build a house takes longer than actually buying or building one. It is expected to have more products related to housing available and decreased housing prices in 2023 in the UK. 2020 witnessed a housing boom which continued to serve the market until 2021. However, the housing sector is going through a decline in 2022. The current rise in living costs has brought down the participation in buying or building houses among the public. The good news is we can expect it to bounce back by 2023.
Let’s say you are looking for housing options in Doncaster, prioritise consulting with professional estate agents in Doncaster, before you arrive at a decision. Whether you are planning to buy a house or build your dream house, you need research-backed expert guidance. And this article is aimed at taking you one step closer to that.
What is happening in the housing market?
The mortgage rates have reached a never before the increase in rate due to the sudden cost of living spike recently. This has caused housing sales to come down by 28% in just a year. In just two months, the house price figures have increased from 9.9% to 12.6% in October. But an ONS study shows that the rate is 14.8% less than it was in July 2022. Mortgage approvals have become more stringent with the increased rates. With such crises, it can be a bit difficult for first-time buyers or even people with impressive property portfolios to decide whether buying or building a house is a safer option. Here are the pros and cons of both scenarios to help you decide better.
Buying a house – Pros and Cons
Buying a house in the UK requires a deposit of at least 10% of the property value. You will have conveyancer and surveying fees which can cost you over £1,500 minimum. If you’re applying for a mortgage, you will be charged mortgage fees and extra charges if you use a broker.
Pros of buying a house
- You can always choose to avail of a mortgage if your funds are low.
- Buying a house saves you time. You can move in as quickly as you find your dream home.
- There are plenty of options for housing
Cons of buying a house
- Your choice in design is limited
- You have to pay the money that is quoted, no choice in building materials
- Energy bills can be pricey
- Stamp duty is mandatory
Building a house – Pros and Cons
Building a house goes exactly according to your financial plan. You decide the instalments and timescale. The plot fees are priced between £100 -£3000 per square metre. You need to secure planning permission and Licences by yourself. There are charges like architect fees, fitting and service fees, survey costs, and superstructure costs at every other stage of the construction.
Pros of building a house
- You decide how your house looks and feels
- You decide the budget and can decide if you want or do not want something for your house.
- You can choose the quality of the housing materials
- You can have your energy system and save costs.
Cons of building a house
- It is a little difficult to secure a mortgage
- You have to adapt to the evolving labour costs during construction. There is no standard charge
- It is highly dependent on external factors like weather.
- You may run short of money if you don’t stick to your budget
Should you build or buy?
If you consider financial safety buying a house is a better option anytime than building. There is a standard rate and you can choose to buy or not depending on your financial availability. Whereas building one can distract you from your budget over the process. If building your dream home is your priority, you can consider going ahead with the construction as there is more creative independence. Make sure you choose the right location and have a well-defined financial plan before you embark on this journey.
Summing up
Building or buying a house is dependent on personal choices and the availability of resources. The preparation and consequences are highly subjective. So have your goals set clearly and ask for professional guidance or opinions from people you trust. Have clarity on your association with your new house and understand if it is financial or emotional!
