Predicting the way the UK property market will behave in the next 12 months is rarely easy. The last few years have seen numerous industry experts make bold claims about recovery that never actually materialised. However a number of signs are starting to appear that the worst could be over for UK homeowners. Many regions have seen small price increases in 2011 with £5,000 being added to the value of the typical home. So is now a good time to buy if you are a first-time buyer? While there have been some increases prices are still lower than they were at the same time last year. The forecast for the rest of 2011 and early 2012 varies on who you listen to. However most experts are of the viewpoint that the market will remain flat or see small price increases. So if you’re a first time buyer now is a good time for you to start looking. The cost of housing is not likely to fall and while any rises might be small they’ll only add to the expense of purchasing a house. if you are entering the market for the very first time here are a couple of tips to help you out. Mortgage and Other Costs The need for big deposits has slowed activity in the housing market significantly. With relatively few new buyers entering the market the volume of houses sold reached a record low in 2010. However whilst 10% home loan deals are still the norm there are indications that loan providers are easing their restrictions on lending slightly. There are now far more 95% home loan deals available with competitive rates of interest. When you are saving for your first home the deposit is just one of the many costs you will have to think about. You will also need to save for stamp duty, solicitor’s and surveyor’s fees and moving fees. Purchasing furniture and appliances for the home are other expenses to take into account. Finally you will need to budget for bills which will be much larger than in shared accommodation or if you’ve been living with parents. New or Used Home? With the low activity level in the house market there is a large stock of unsold new houses readily available. If you shop around you’ll find some great deals on new build houses with many developers offering a variety of incentives to encourage people to purchase them. New homes today are built to fantastic standards and will come with a 10 year warranty for complete peace of mind. While a used home might be cheaper to purchase it’ll be more expensive to run and maintain. Shared Ownership Shared ownership schemes have grown to be a lot more common recently. They enable people to purchase a share in a home that they normally would be unable 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 over time so that ultimately you can own 100% of it. Another option is to consider buying a property with some of your friends. This might seem like an attractive choice but can have its downside. Ensure that you use a solicitor to draw up legally binding contracts.

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