Forecasting the way the UK home market will behave in the next 12 months is rarely easy. The last few years have seen many industry experts make strong statements about recovery that never actually materialised. However there are now signs the market has reached its lowest level and may be on the way up once again. Many regions have seen small price increases in 2011 with £5,000 being added to the value of the average home.
So is now a good time to buy or should you wait a little longer? Whilst there have been some gains prices are still lower than they were at the same time a year ago. The outlook 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 for first time buyers I would say now’s as good as time as any to enter the market. Whilst prices might not increase much further they are not likely to drop and you will find some good deals from many property builders on new houses. If you are thinking about buying your first home in the near future here are a handful of quick tips to help you out. Mortgage and Other Costs This is the largest obstacle for many people and one reason why the marketplace is so flat at this time. The times of 100% or higher home loans are well and truly over. These days most banks and building societies want a 10% deposit to obtain the best deals. However some 95% home loan deals at competitive rates have started to appear for people with a good credit score. A deposit is of course just one of the many items that you need to save for. You should also think about stamp duty if the property is over a certain value, solicitor’s costs and moving costs. Buying furniture and home appliances for the home are other expenses to think about. Finally it is well worth taking the time to budget for the bills you will have to pay every month. New or Used Home? If you are thinking of buying a home should you choose a brand new or a used one? With the present state of the housing market there is a large stock of new homes that developers are keen to sell. You can get some terrific deals on new houses with many developers lowering asking prices considerably. As well as reducing prices many developers are offering other incentives like assistance with finding a deposit, part exchange schemes and free white goods and appliances. In general new houses are also cheaper to run and will come with a 10 year warranty. Shared Ownership Shared ownership schemes have become a lot more common in recent years. They enable people to buy a share in a house which they otherwise would not be able to afford . A mortgage is paid on the portion of the property you own and rent to a housing association that owns the other share. You are able to increase the share of the property you own over time so that eventually you can own 100% of it. Another option you could consider is buying a home with a group of your friends. Although this can seem like a good idea it can be fraught with pitfalls for the unwary. Always use a solicitor to draw up agreements to make sure that everyone knows their obligations and responsibilities. For the biggest selection of new homes for sale visit WhatHouse?
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