The housing market in the UK has been in a state of turmoil for the last several years. However there are signs the market has finally begun to stabilise and many industry experts are predicting small price rises for many areas. Information released by Zoopla in July reported that average house prices increased by about £5,000 in 2011 with the typical home in the UK now costing £216,534. So if you’re a first time buyer is it a good time to enter the market? While prices are on their way up once again they are still at lower levels than July a year ago. The forecast for the rest of 2011 and early 2012 varies on whom you listen to. Overall the general consensus appears to be the market will see some small increases but will remain fairly stable. 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’re thinking of buying your first house 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 within the housing market significantly. With a lack of new buyers going into the market it’s taking considerably longer for homes to sell. In fact the number of sales in 2010 reached a record low. However while most loan providers still reserve their best deals for those with a 10% or bigger deposit there are signs of the constraints on lending reducing. More 95% deals have started to appear on the market and while the interest on them may be a little higher they are still competitive. A deposit is of course just one of the many items that you need to save for. You must also save for stamp duty, solicitor’s and surveyor’s charges and moving fees. Buying 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 were living with parents. New or Used Home? With the low level of activity in the house market there’s a large stock of unsold new houses readily available. If you shop around you can find some terrific deals on new build homes with many developers offering a variety of incentives to encourage people to buy them. A new home will also be built to much better standards and come with a 10 year warranty. Although a used home may be cheaper to buy it will be more expensive to run and look after. Shared Ownership Shared ownership programmes are becoming increasingly popular for first time buyers. With a shared ownership scheme you pay a mortgage on the share of the property you own and pay rent on the remainder to a property association. With time you increase the amount of the property you own. There are lots of shared ownership schemes throughout the country and they can be a great way to get on the property ladder particularly for key workers such as nurses, teachers and police. Another option is purchasing with a friend or group of friends. Although this can seem like a good idea it can be fraught with pitfalls for the unwary. Ensure that you make use of a solicitor to draw up legally binding agreements.

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