Making forecasts about the UK property is not always easy. Over the last couple of years we have seen a number of false dawns and claims of recovery that never materialised. However it finally looks like the recovery is on the way for most regions. Most regions have seen small but significant price rises this year with £5,000 being added to the value of the average home. So is now a great time to buy if you are a first time buyer? Whilst prices are on their way up once more they are still at lower levels than July last year. Forecasts for 2011 and 2012 vary considerably according to where they come from. The overall consensus is that prices will increase slightly or remain flat. So if you are thinking of purchasing a home I’d say do it now. Whilst prices may not rise much further they are not likely to drop and you can find some great deals from many home builders on new homes. If you’re thinking about buying your first house in the near future here are a couple of quick tips to help you out. Mortgage and Other Expenses The need for large deposits by many lenders is one of the main reasons for the lack of activity in the market. With relatively few new buyers going into the market the volume of houses sold reached a record low in 2010. However while 10% home loan deals are still the norm there are indications that loan providers are easing their restrictions on lending a little. More 95% deals have started to appear on the market although the interest on them may be slightly higher they are still competitive. A deposit is of course just one of the many things that you need to save for. You should also think about stamp duty when the property is over a certain value, solicitor’s costs and moving costs. Furnishing your new home and decoration are other expenses you’ll need to meet. Finally it’s worth finding the time to plan for the bills you will have to pay each month. New or Used Home? If you’re thinking about buying a property should you choose a new or a used one? With the recent lack of activity in the housing market a lot of developers find themselves with a big stock of unsold new homes on their hands. There are some great deals available on new houses with many developers lowering asking prices by as much as 10%. As well as reducing prices several developers are offering other incentives like help with finding a deposit, part exchange programmes and free white goods and home appliances. New build properties will also have a free 10 year warranty from the builder and are a lot cheaper to run and look after. Shared Ownership Shared ownership is one of the best ways for many first time buyers to be able to afford their first property. You take out a mortgage for the part of the property you own and pay rent on the other portion to a housing organization. Over time you increase the amount of the home you own. There are many shared ownership programmes throughout the United Kingdom with many of them directed at key workers like medical workers, firemen and teachers. Another option you could consider is buying a home with a group of your friends. This might seem like an attractive option but can have its downside. Ensure that you make use of a lawyer to draw up legally binding contracts.

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