The housing industry in the UK has been in a state of uncertainty for the last couple of years. However there are signs the market has finally begun to stabilise and many experts are predicting small price increases for many areas. Information released by Zoopla in July reported that average house prices increased by about £5,000 in 2011 with the average home in the UK now costing £216,534. So if you are a first time buyer is it a good time to go into the market? Whilst prices are on their way up once again they are still at lower levels than July last year. Forecasts for 2011 and 2012 vary considerably according to where they come from. However many experts are of the opinion that the market will stay flat or see modest price rises. So for first time buyers I’d say now’s as good as time as any to go into the market. The cost of housing is not likely to fall and while any rises might be small they will only add to the expense of buying a home. if you are going into the market for the first time here are a handful of tips to help you out. Mortgage and Other Costs This is the biggest obstacle for most people and one reason why the market is so flat right now. The days of 100% or more mortgages are well and truly finished. Nowadays most banks and building societies want a 10% deposit to obtain the best deals. However more 95% deals have started to appear in the last few months particularly for people with excellent credit ratings. When you’re saving for your first house the deposit is just one of the many expenses you will have to think about. You will also need to save for stamp duty, solicitor’s and surveyor’s expenses and moving fees. Purchasing furniture and home appliances for the home are other expenses to take into account. Finally it’s worth finding the time to budget for the bills you will have to pay each month. New or Used Home? With the low activity level in the property market there is a large stock of unsold new houses available. Several developers are offering some terrific deals and incentives on the homes they have to make them sell faster which can add up to 10% of the selling price. A new home will also be built to much better standards and come with a 10 year warranty. While a used home may be cheaper to purchase it’ll be more expensive to run and maintain. Shared Ownership Shared ownership is amongst the best ways for many first-time buyers to be able to afford their first property. With a shared ownership program you pay a mortgage on the share of the property you own and pay rent on the remainder to a housing association. Over time you increase the amount of the property you own. There are lots of shared ownership programmes throughout the United Kingdom with many of them geared towards key workers such as medical workers, firemen and teachers. Another option is to think about buying a home with some of your friends. This might seem like an attractive choice but can have its downside. Always usea solicitor to draw up agreements to make sure that everyone knows their duties and responsibilities.

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