Forecasting how the United Kingdom property market will behave within the next 12 months is never easy. The last few years have seen many industry experts make strong claims about recovery that never actually materialised. However now there are signs the market has reached its lowest level and may be on the way up once more. Many parts of the country have seen small increases in value this year and the pattern seems set to continue into next year as well.
So if you are a first time buyer is it a good time to enter the market? While prices have risen slightly they are still less than they were at this time last year. The outlook for the rest of 2011 and early 2012 varies on whom you listen to. The general consensus is prices will increase a little or stay flat. So if you’re a first time buyer now is a good time to begin looking. The cost of housing is not likely to fall and while any rises might be small they’ll only add to the cost of buying a home.
if you are entering the market for the first time here are a couple of tips to help you out.
Mortgage and Other Expenses
This is the biggest obstacle for most people and one reason why the marketplace is so flat right now. The times of lenders being willing to give 100% mortgages are gone. These days most banks and building societies want a 10% deposit to obtain the best deals. However some 95% mortgage deals at competitive rates have started to appear for those with a good credit rating.
A deposit is of course just one of the many items that you will need to save for. You should also think about stamp duty when the property is over a certain value, solicitor’s fees and moving expenses. Purchasing furniture and appliances for the home are other expenses to consider. Finally you will need to budget for bills that will be much 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 eager to sell new build homes. You can find some terrific deals and incentives that can help you save as much as 10% of the selling price. A new home will also be built to better standards and come with a 10 year warranty. While a used home may be cheaper to buy it’ll be more expensive to run and maintain.
Shared Ownership
Shared ownership programmes are becoming increasingly popular for first-time buyers. You take out a mortgage for the portion of the property you own and pay rent on the other part to a housing association. Over time you increase the amount of the home you own. There are lots of shared ownership programmes in the United Kingdom with many of them aimed at key workers like nurses, firemen and teachers.
Another option is purchasing with a friend or group of friends. This may seem like an attractive choice but can have its downside. Ensure that you use a solicitor to draw up legally binding agreements. Find new homes for sale in the UK on the WhatHouse? website.