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The housing market in the united kingdom has been in a state of uncertainty for the last several years. However there are indications the market has finally begun to stabilise and many industry experts are forecasting small price rises for many regions. Information published by Zoopla in July stated that typical house prices rose by about £5,000 in 2011 with the typical home in the UK now priced at £216,534. So if you’re a first time buyer is it a good time to enter the market? While prices have gone up slightly they are still lower than they were at this point last year. The forecast for the rest of 2011 and early 2012 varies on who you listen to. Overall the general consensus appears to be that the market will see some modest gains but will stay fairly stable. So if you are a first time buyer now is a good time for you to begin looking. The cost of housing is not likely to fall and while any rises may be small they’ll only add to the expense of purchasing a home. If you are thinking about buying your first house in the near future here are a handful of quick tips to help you out.

Mortgage and Other Costs

The need for large deposits has slowed activity in the housing market considerably. With a lack of new buyers entering the market it is taking considerably longer for homes to sell. In fact the volume of sales in 2010 reached a record low. However although 10% home loan deals are still the norm there are indications that lenders are easing their restrictions on lending slightly. There are now far more 95% mortgage loan deals available with competitive rates. A deposit is needless to say just one of the many items that you need to save for. You will also need to think about stamp duty if the property is over a certain value, solicitor’s fees and moving expenses. Buying furniture and home appliances for the home are other expenses to take into account. Finally you will need to plan for bills that will considerably larger than in shared accommodation or if you were living with parents. New or Used Home? With the lack of activity in the housing market there are many developers with a stock of unsold new properties on their hands. If you shop around you’ll find some good deals on new build houses with many developers offering a range of incentives to encourage people to purchase them. A new property will also be built to much better standards and feature a 10 year warranty. Although a second hand home might be slightly cheaper it will cost much more to maintain and heat.

Shared Ownership

The popularity of shared ownership schemes has grown considerably in recent years. They allow people to buy a share in a house that they otherwise would be unable to afford . A mortgage is paid on the part of the property you own and rent to a housing association that is the owner of the other share. It is possible to increase the share of the property you own over time so that eventually you are able to own 100% of it. Joining a shared ownership plan means that you don’t need to save for years to find a large deposit and you can get on the property ladder much faster. Another choice is purchasing with a friend or group of friends. This may appear like an attractive option but can have its downside. Always use a lawyer to draw up agreements and ensure that everyone knows their obligations and responsibilities.

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