Forecasting which way the UK home market is going is not easy. Over the last few years there have been several false dawns and claims of recovery that never materialised. However it finally looks like the recovery is on the way for many regions. Many areas have seen small price increases in 2011 with £5,000 being added to the value of the average house.
So if you are a first time buyer is it a good time to enter the market? Although there have been some increases prices are still lower than they were at the same time a year ago. Forecasts for 2011 and 2012 vary considerably depending on where they come from. The overall consensus is prices will increase slightly or remain flat. So for first time buyers I’d say now’s as good as time as any to go into the market. Although prices might not increase much further they’re not likely to drop and you will find some good deals from many property builders on new homes.
If you are thinking about buying your first home in the near future here are a couple of quick tips to help you out.
Mortgage and Other Expenses
Saving a deposit is probably the biggest hurdles for many people and one of the reasons why the housing industry has been flat during the last few years. The days of lenders being ready to give 100% home loans are gone. These days most financial institutions and building societies demand a 10% deposit to get the best deals. However more 95% deals have started to appear during 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 budget for in addition to a deposit. There is stamp duty to pay on many homes, solicitor’s fees and surveyor’s fees as well. Do not forget the cost of furnishing your home and the fact you will be paying the bills by yourself. This is often quite an increase in your monthly budget if you have been living with your parents or in shared accommodation.
New or Used Home?
If you’re thinking about buying a house should you choose a brand new or a used one? With the present state of the housing marketplace there is a big stock of new houses that developers are keen to sell. You can find some terrific deals on new homes with many developers reducing asking prices considerably. Many developers are offering incentives including free white goods or assistance with finding a deposit. In general new homes are also less expensive to run and will come with a 10 year warranty.
Shared Ownership
The popularity of shared ownership schemes has grown considerably in recent times. 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 portion of the property you own and rent to a housing association that owns the other share. It is possible to increase the share of the property you own with time so that eventually you can own 100% of it. Joining a shared ownership program means that you don’t have to save for years to get a large deposit and you can get on the property ladder a lot quicker.
Another choice is buying with a friend or group of friends. This may appear like an attractive choice but can have its downside. Make sure that you make use of a solicitor to draw up legally binding agreements. To find new houses in the UK visit The WhatHouse? website.