The property market in the united kingdom has seen considerable price falls in the last couple of years. However it appears like the market has finally stabilised and many areas are seeing prices climb slightly. Data released by Zoopla in July stated that average house prices increased by about £5,000 in 2011 with the typical home in the UK now priced at £216,534. So is now a good time to buy or should you hold out a little longer? While prices are on their way up once again they are still at lower levels than July last year. Predictions for 2011 and 2012 differ considerably according to where they come from. However most experts are of the viewpoint that the market will remain flat or see modest price increases. So if you are thinking of investing in a home I’d say do it now. The cost of property is not likely to fall and while any increases may be small they’ll only add to the cost of purchasing a home. if you are going into the market for the very first time here are a couple of tips to help you out.

Mortgage and Other Expenses

The requirement for large deposits has slowed down activity in the housing market considerably. With relatively few new buyers entering the market the volume of properties sold reached a record low in 2010. However while most loan companies still reserve their best deals for people with a 10% or bigger deposit there are signs of the constraints on lending reducing. More 95% deals have started to appear on the market although the interest on them may be a little higher they are still competitive. A deposit is needless to say just one of the many items that you need to save for. You should also think about stamp duty if the property is over a certain value, solicitor’s costs and moving fees. Furnishing your home and decoration are other expenses you’ll need to meet. Finally you will have to plan for bills which will considerably larger than in shared accommodation or if you’ve been living with parents. New or Used Home? With the housing industry still flat developers are desperate to sell new build houses. Several developers are offering some great deals and incentives on the homes they have to help them sell faster which can add up to 10% of the asking price. A new house will also be built to better standards and come with a 10 year warranty. Although a used home may be cheaper to buy it will be more expensive to run and look after.

Shared Ownership

Shared ownership schemes have grown to be much more common in recent years. They enable people to buy a share in a home which they normally would be unable to afford . A mortgage is paid on the portion of the property you own and rent to a housing organization that is the owner of the other share. It is possible to increase the share of the property you own with time so that eventually you are able to own 100% of it. Another option you could consider is buying a house with a group of your friends. Although this can seem like a good idea it can be fraught with pitfalls for the unwary. Always usea lawyer to draw up agreements and ensure that everyone knows their obligations and responsibilities.

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