'Don't do anything rash'

From buying 'the best in class' to school catchment areas, TV property expert and founder of advice platform Move iQ Phil Spencer explains how to navigate the housing market as recession looms

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With may prove to be the longest downturn since records began, it's an uncertain time for everyone - not least those considering moving home.

Tomorrow's Budget may see further turbulence for the money and property markets, with Chancellor Jeremy Hunt set to outline how the Government plans to fill the UK's £55 billion fiscal hole. The catastrophic mini-Budget set out by his predecessor Kwasi Kwarteng in September sent the pound into freefall, already rising interest rates were the UK economy heading for a recession, and the Bank of England warning that hiked further and lenders withdrew hundreds of mortgage offers overnight, throwing the property market into disarray and denting the confidence of many home buyers.

The natural presumption is that the housing market will fall in a recession, but then nobody ever thought that the market could rise in a pandemic-and it did by 25 per cent. We're in uncharted waters but there are things you can do for a smoother sailing.

SHOULD I EVEN TRY TO BUY NOW? 

I don’t foresee a house price crash but I do think we will see a fall. A return to a more stable market would not be a bad thing but the economy right now is experiencing a shock and things feel unpredictable. Don’t do anything rash. I suspect we will all feel a bit brighter come springtime so if you don’t have to move, sit on the fence for a bit. You may be worried that mortgage rates will have risen hugely in six months’ time but if house prices fall a bit, that might balance out the increase in interest rates. In other words, it might cost you more to borrow the money, but you might not have to borrow as much.

Instead, sort out your finances. Secure a mortgage offer now. It will last for between three and six months.