From my perspective, demand is looking likely to continue rising, meaning that less sought-out areas will become more desirable and houses in the area will benefit with value increases at least in line with national averages.
The holy grail is when the value of your property outperforms the market trend – that is what you are aiming for. If all prices rise by 10pc, then it may feel like you have made money but when you go to buy the properties you are looking at will also have seen a lift.
However, if the market moves by 10pc and your house increases by 15pc, then you have that extra equity to play with.
A couple I helped recently were happy to live in a flat without many opportunities to add value, over a two-bed house with a garden. For them the location was paramount, and their budget couldn’t reach a house in that area.
There is no first-time buyer in the land that ends up with exactly what they want, where they want it. There just aren’t, and that has been the case forever. Even our grandparents’ generation had to compromise in order to buy what they could afford.
However, the beauty of the market is that places are rising and falling in popularity all the time and a compromise to get on to the ladder may reap benefits when you look to take the next step.
I would say the sensible money is on something that will suit you for 10 years, then you have something that is reliably future-proofed.
There is no right or wrong way, it has to be what works for you, and I will always recommend buying over renting.
Even with higher interest rates it is better to be putting your money into your own mortgage instead of someone else’s.