The property market in the united kingdom has seen considerable price falls during the last few years. However there are indications that the market has eventually begun to stabilise and many industry experts are forecasting small price increases for many areas. The latest data from the property web site Zoopla showed that the cost of the average home in the UK increased by £5,000 in the six months to July. So is now a great time to buy if you are a first time buyer? Whilst prices have increased slightly they are still less than they were at this time last year. Forecasts for 2011 and 2012 vary considerably according to where they come from. However most experts are of the opinion that the market will stay flat or see modest price rises. So if you are thinking about investing in a home I would say do it now. Although prices may not increase much further they’re not likely to drop and you will find some good deals from many home builders on new houses. If you’re thinking about purchasing your first home or flat here are some tips: Mortgage and Other Costs Saving a 10% or even bigger deposit can take years and is one reason for the recent lack of activity in the housing marketplace. The times of 100% or higher home loans are well and truly over. Today you’ll need a minimum of a 10% deposit to be able to get the best deals with the best interest rates. However more 95% deals have started to appear in the last couple of months in particular for those who have excellent credit ratings. Obviously there are a number of other things you need to save and plan for as well as a deposit. There is stamp duty to pay on many homes, solicitor’s expenses and surveyor’s fees as well. You will also have to furnish your new house and pay for all of the bills. This can come as a shock if you have been living in a shared house or with parents. New or Used Home? With the lack of activity in the housing market there are lots of developers with a stock of unsold new houses on their hands. Many developers are offering some terrific deals and incentives on the properties they have to help them sell faster which can add up to 10% of the selling price. New properties today are built to fantastic standards and will come with a 10 year guarantee for total peace of mind. Whilst a used home might be slightly cheaper it will cost more to maintain and heat. Shared Ownership The popularity of shared ownership schemes has grown significantly in recent years. They allow people to buy a share in a home that they otherwise would not be able 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. You are able to increase the share of the home you own over time so that eventually you are able to own 100% of it. Joining a shared ownership plan means that you don’t need to save for years to get a huge deposit and you can get on the property ladder much sooner. Another option you could look at is buying a house with a group of your friends. While this can seem like a good idea it can be fraught with stumbling blocks for the unwary. Always use a solicitor to draw up agreements and ensure that everybody knows their duties and responsibilities.

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