Buying a House in 2024 as a Muslim: It’s Better, But Still Not Ideal

My family and I have plunged headfirst into the chaotic battleground of the housing market, and in this article, I’ll cover three key topics: (1) where we’re purchasing and the reasons behind our choice; (2) how we’re financing it, including current Islamic financing options; and (3) top tips for securing a great deal on a property.

But before we dive into that, let’s tackle the burning question: is now the right time to buy?

Is now a good time to be buying? 

Sellers are still clinging to the golden days of 2020-21 when bidding wars drove house prices up, and estate agents held closed bid auctions. However, with interest rates rising, the pool of buyers in the market has shrunk significantly.

Despite this, house prices have continued to rise, with an overall increase of 17% since 2020. Yet, this headline statistic obscures a crucial detail: most of the growth happened during the first two years. In the past two years, prices have only grown by 1.14% and 2.05%, respectively. In fact, house prices have been relatively stagnant, even dropping by 5% in some areas of the UK over the last two years.

This means that while higher interest rates have reduced buyers’ purchasing power, resulting in fewer transactions and cooling demand, house prices in many areas now appear more reasonable.

As we discuss in our video, we believe the housing market is currently in a holding pattern due to high interest rates. However, once rates begin to fall, which is expected over the next two years, the market is likely to rebound quickly and could surge even more aggressively than before.

In our humble opinion, now is the time to buy.