Predicting which way the UK property market is going is not easy. The last few years have seen several industry experts make strong statements about recovery that never really materialised. However there are now signs the market has reached its lowest level and may be on the way up once more. Many parts of the country have seen small increases in value this year and the pattern seems set to continue into next year as well. So is now a good time to purchase or should you wait a little longer? Whilst there have been some gains prices are still lower than they were at the same time a year ago. Predictions for 2011 and 2012 differ considerably according to where they come from. Overall the general consensus seems to be the market will see some modest increases but will remain fairly stable. So if you are thinking of investing in a home I’d say do it now. Prices are unlikely to drop and there are some great deals available on new houses. 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 Expenses

The demand for large deposits by many lenders is among the principal reasons for the lack of activity in the market. With relatively few new buyers entering the market the volume of houses sold reached a record low in 2010. However while most lenders still reserve their best deals for those with a 10% or greater deposit there are signs of the restrictions on lending easing. There are now a lot more 95% mortgage loan deals available with competitive interest rates. A deposit is of course just one of the many things that you will have to save for. You will also need to think about stamp duty if the property is over a certain value, solicitor’s costs and moving costs. Furnishing your new household and decoration are other expenses you’ll have to meet. Finally you will need to plan for bills that will be much larger than in shared accommodation or if you were living with parents. New or Used Home? Should you buy a used or new home? With the current state of the housing market there is a large stock of new homes that developers are keen to sell. There are some great deals available on new homes with lots of developers lowering asking prices by as much as 10%. Many developers are offering incentives like free white goods or assistance with finding a deposit. Generally new homes are also less expensive to run and will come witha 10 year warranty.

Shared Ownership

Shared ownership schemes are becoming increasingly popular for first time buyers. You take out a home loan for the portion of the house you own and pay rent on the other portion to a housing organization. Over time you increase the amount of the property you own. There are many shared ownership programmes throughout the country and they can be a great way to get on the property ladder especially for key workers like nurses, teachers and police. Another option you could consider is purchasing a residence with a group of your friends. Although this can seem like a good option it can be fraught with pitfalls for the unwary. Ensure that you make use of a solicitor to draw up legally binding contracts.

Looking for new homes West Midlands? Visit the new and improved What House site.