The property market in the UK has seen considerable price falls during the last few years. However there are signs the market has eventually begun to stabilise and several industry experts are predicting small price rises for many areas. The latest information from WhatHouse? showed that typical house prices have gone up by nearly £5,000 in 2011. So is now a good time to purchase or should you wait a little longer? Although there have been some gains prices are still lower than they were at the same time last year. The forecast for the rest of 2011 and early 2012 varies on whom you listen to. Overall the general consensus seems to be that the market will see some small gains but will remain fairly stable. So if you’re a first time buyer now is a great time to begin looking. The cost of housing is unlikely to fall and while any rises may be small they’ll only add to the expense of purchasing a house. If you’re thinking about purchasing your first home or flat here are a few pointers:

Mortgage and Other Expenses

The need for large deposits has slowed down activity within the housing market significantly. With relatively few new buyers going into the market the number of houses sold reached a record low in 2010. However while 10% home loan deals are still the norm there are signs that lenders are reducing their restrictions on lending slightly. There are now a lot more 95% mortgage loan deals available with competitive interest rates. When you’re saving for your first property the deposit is just one of the many expenses you will have to think about. You should also think about stamp duty when the property is over a certain value, solicitor’s fees and moving costs. Furnishing your new home and decoration are other costs you’ll have to meet. Finally you will have to plan for bills which will considerably larger than in shared accommodation or if you were living with parents. New or Used Home? With the low activity level in the property market there is a large stock of unsold new houses readily available. Several developers are offering some great deals and incentives on the properties they have to help them sell faster which can add up to 10% of the selling price. New houses today are made to fantastic standards and will come with a 10 year warranty for total peace of mind. Whilst a used home might be a little cheaper it’ll cost you much more to maintain and heat.

Shared Ownership

The popularity of shared ownership schemes has grown substantially in recent years. They enable people to purchase a share in a house which they normally would not be able to afford . A mortgage is paid on the part of the property you own and rent to a housing organization that owns the other share. You can increase the share of the property you own over time so that eventually you are able to own 100% of it. Another option is to think about buying a property with a few of your close friends. Although this can seem like a good option it can be fraught with stumbling blocks for the unwary. Always use a lawyer to draw up agreements to make sure that everyone knows their duties and responsibilities.

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