The home market in the UK has seen significant price falls during the last couple of years. However it looks like the market has finally stabilised and many areas are beginning to see prices climb slightly. The latest information from WhatHouse? indicated that typical house prices have increased by nearly £5,000 in 2011. So is now a good time to buy if you are a first time buyer? Although there have been some increases prices are still less than they were at the same time a year ago. Forecasts for 2011 and 2012 differ considerably according to where they come from. The general consensus is prices will increase a little or continue to be flat. So for first-time buyers I’d 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 will only add to the cost of buying a house. If you’re thinking about buying your first home or flat here are a few pointers: Mortgage and Other Expenses The need for big deposits has slowed activity in the housing market considerably. With a lack of new buyers entering the market it’s taking a lot longer for properties to sell. In fact the volume of sales in 2010 reached an all time low. However while most loan providers still reserve their best deals for those with a 10% or greater deposit there are signs of the constraints on lending easing. There are now a lot more 95% mortgage deals available with competitive rates of interest. When you are saving for your first home the deposit is just one of the many expenses you will need to take into account. You should also think about stamp duty when 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 budget for bills which will considerably larger than in shared accommodation or if you were living with parents. New or Used Home? If you are thinking of buying a house should you choose a brand new or a used one? With the present state of the housing marketplace there is a big stock of new homes that developers are keen to sell. You can get some terrific deals on new homes with many developers lowering asking prices considerably. In addition to reducing prices many developers are offering other incentives like help with finding a deposit, part exchange programmes and free white goods and appliances. In general new properties are also cheaper to run and will come witha 10 year manufacturer’s warranty. Shared Ownership Shared ownership schemes have grown to be a lot more common in recent times. They allow people to purchase a share in a property 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 association that owns the other share. It is possible to increase the share of the property you own with time so that eventually you can own 100% of it. Joining a shared ownership scheme 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 option you could consider is purchasing a home with a group of your friends. While 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 agreements.

Find the biggest choice of new houses at WhatHouse?