The property market in the UK has seen substantial price falls during the last couple of years. However signs are starting to appear that the market has reached its lowest point with many experts forecasting small increases within the next 12 months. Data released by Zoopla in July reported that typical house prices increased by about £5,000 in 2011 with the average home in the united kingdom now priced at £216,534.

So is now a good time to buy or should you wait a little longer? While 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. The overall consensus is that prices will increase slightly or stay flat. So if you are a first time buyer now is a great time to begin looking. While prices may not rise much further they are not likely to drop and you can find some good deals from many property builders on new homes.

If you are thinking about buying your first home or flat here are a few pointers:

Mortgage and Other Expenses

The demand for big deposits by most lenders is one of the principal reasons for the lack of activity in the market. With relatively few new buyers going into the market the volume of houses sold reached a record low in 2010. However although 10% home loan deals are still the norm there are signs that lenders are reducing their restrictions on lending slightly. More 95% deals have started to appear on the market although the interest on them may be a little higher they are still competitive.

When you’re saving for your home there are many other costs that you need to think about as well as the deposit. On some properties depending on the price you will have to pay stamp duty . You will also need to budget for solicitor and surveyor’s fees and also land registry costs. Don’t forget the cost of furnishing your home and the fact you will be paying the bills on your own. This is often quite an increase in your monthly budget if you have been living with your parents or in shared accommodation.

New or Used Home?

Should you purchase a new or used property? With the recent lack of activity within the housing market a lot of developers find themselves with a big stock of unsold new properties on their hands. There are some great deals available on new houses with many developers lowering asking prices by as much as 10%. Many developers are offering incentives such as free white goods or assistance with finding a deposit. Generally new homes are also cheaper to run and will come with a 10 year warranty.

Shared Ownership

Shared ownership is one of the best ways for many first-time buyers to be able to find the money for their first property. With a shared ownership program you pay a mortgage on the share of the home you own and pay rent on the rest to a property association. With time you increase the amount of the home you own. There are lots of shared ownership programmes throughout the United Kingdom with many of them directed at key workers like medical professionals, firemen and teachers.

Another option you could consider is purchasing a home with a group of your friends. This may appear like an attractive choice but can have its downside. Always use a solicitor to draw up agreements to make sure that everyone knows their duties and responsibilities. Find new homes for sale in the UK on the WhatHouse? website.