Why January is not a quiet time in the housing market

There are a number of reasons why those in the know are getting in early in 2014, some of which are related to the state of the market, and some to a fundamental shift in the way people buy houses.

Let's look at the market first.  I know you might expect a house builder to say this, but it genuinely is a very good time to buy.  There is a stability in the market which we haven't seen for some years, with steady price growth which we estimate will see rises of around four per cent in 2014 (in Norfolk).  More importantly, the increase in demand has not yet been matched by a surge in supply of houses, so it will be the early birds who get the best choice of suitable properties, before the March/April spike in buyers.

Another reason is a political one.  The government will not want to see the market overheat, and with the Bank of England's hands tied on raising interest rates (Governor Mark Carney has said this will not happen until unemployment falls to 7%), the only real option to dampen down the market will be to retrict Help to Buy in some way.  Unfortunately, these kind of decisions are taken on a national basis, and with prices in London and the souteast skewing the market, such a move may come before it is justified in the rest of the country.

My advice to anyone wanting to take advantage of this excellent scheme is to get on with it; I could see it becoming more limited scope before the year is out.  But there are also more strucutral reasons why buyers are not waiting until spring to act.  In the past, seeking out a potnetial new home meant getting out there and physically looking, and this tended to happen when the sun started shining.

Nowadays, however, most intial research is done online, and the cold winter months are just as good a time to do that as any.  You only need to look at the Rightmove traffic statistics for the week after Christmas to see this.  If you go along with the idea that people wait for better weather to start looking for a new home, you will be very much behind the curve.

So with steadily rising prices, a demand-led market, a potential future limitation of Help to Buy, and savvy buyers already looking, it seems silly to wait for some notional - and probably outdated - concept of a spring bounce to act.  If you are thinking about buying a new home in 2014, my advice is to get moving!