The housing market in the united kingdom has been in a state of uncertainty for the last few years. However there are signs that the market has finally begun to stabilise and several experts are predicting small price increases for many regions. Data released by Zoopla in July reported that typical house prices increased by about £5,000 in 2011 with the average home in the UK now costing £216,534. So is now a great time to buy if you are a first-time buyer? Whilst prices are on their way up once more they are still at lower levels than July a year ago. Predictions for 2011 and 2012 vary considerably depending on where they come from. The general consensus is prices will increase a little or stay flat. So for first-time buyers I would say now is as good as time as any to go into the market. The cost of housing is unlikely to fall and while any rises may be small they’ll only add to the cost of purchasing a home. If you are thinking about buying your first home in the near future here are a couple of quick tips to help you out.

Mortgage and Other Costs

This is the largest obstacle for most people and one reason why the market is so flat at this time. The times of loan providers being ready to give 100% home loans have ended. These days most financial institutions and building societies demand a 10% deposit to obtain the best deals. However some 95% home loan deals at competitive rates have started to appear for people with a good credit score. Of course there are a number of other things that you have to save and plan for as well as a deposit. There is stamp duty to pay on many homes, solicitor’s expenses and surveyor’s fees as well. You will also need to furnish your new home and pay for all of the bills. This is often quite an increase in your monthly budget if you’ve been living with your parents or in shared accommodation. New or Used Home? With the low level of activity in the property market there is a large stock of unsold new houses available. Several developers are offering some great deals and incentives on the properties they have to help them sell quicker which can add up to 10% from the asking price. A new property will also be built to much better standards and come with a 10 year warranty. Whilst a used home may be slightly cheaper it will cost more to take care of and heat.

Shared Ownership

Shared ownership programmes have become increasingly popular for first time buyers. With a shared ownership program you pay a mortgage on the share of the property 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 schemes throughout the country and they are often the best way to get on the property ladder especially for key workers like nurses, teachers and police. Another option is purchasing with a friend or group of friends. This may appear like an attractive option but can have its downside. Ensure that you make use of a lawyer to draw up legally binding contracts.

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