Making predictions about the UK property is not an easy task. The last few years have seen several industry experts make bold claims about recovery that never really materialised. However a number of signs are starting to appear that the worst may be over for UK home owners. Many areas have seen small price increases in 2011 with £5,000 being added to the value of the typical house. So if you’re a first time buyer is it a good time to enter the market? Although there have been some gains prices are still lower than they were at the same time last year. The outlook 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 stay flat or see small price increases. So if you are thinking of buying a home I’d say do it now. Prices are unlikely to drop and there are some excellent deals available on new properties. If you’re thinking about buying your first home in the near future here are a handful of quick tips to help you out. Mortgage and Other Expenses The need for big deposits has slowed down activity in the housing market considerably. With relatively few new buyers entering the market the number of properties sold reached a record low in 2010. However although 10% home loan deals are still the norm there are indications that loan providers are easing their restrictions on lending slightly. There are now a lot more 95% mortgage deals available with competitive interest rates. When you are saving for your first house the deposit is just one of the numerous costs you will need to think about. You should also think about stamp duty if the property is over a certain value, solicitor’s costs and moving costs. Purchasing furniture and home appliances for the home are other expenses to consider. Finally you will need to plan for bills that will considerably larger than in shared accommodation or if you were living with parents. New or Used Home? With the lack of activity in the housing marketplace there are many developers with a stock of unsold new houses on their hands. You can find some great discounts and incentives that can save you as much as 10% of the selling price. New properties today are built to fantastic standards and will come with a 10 year warranty for complete peace of mind. Although a used home might be cheaper to buy it’ll be more expensive to run and look after. Shared Ownership Shared ownership schemes have grown to be much more common recently. They enable people to buy a share in a home which they otherwise would be unable to afford. A mortgage is paid on the part 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 over time so that eventually you can own 100% of it. Joining a shared ownership scheme means that you don’t have to save for years to find a large deposit and you can get on the property ladder much sooner. Another option you could think about is purchasing a house with a group of your friends. This might seem like an attractive choice but can have its downside. Ensure that you make use of a lawyer to draw up legally binding contracts.

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