The property market in the UK has seen considerable price falls in the last couple of years. However it looks like the market has eventually stabilised and many areas are seeing prices rise slightly. The latest information from WhatHouse? showed that average house prices have risen by almost £5,000 in 2011. So is now a good time to buy or should you hold out a little longer? While there have been some increases prices are still less than they were at the same time last year. The outlook for the rest of 2011 and early 2012 varies on who you listen to. The overall consensus is that prices will increase slightly or stay flat. So if you’re a first time buyer now is a good time to begin looking. Whilst prices may not rise much further they’re unlikely to drop and you can get some great deals from many property builders on new homes. 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

Saving a deposit is one of the biggest hurdles for most people and one of the reasons why the housing market has been flat for the last couple of years. The times of lenders being willing to give 100% home loans have ended. Nowadays most banks and building societies demand a 10% deposit to get the best deals. However some 95% home loan deals at competitive rates have started to appear for people with good credit. When you are saving for your first house the deposit is just one of the numerous costs you will need to think about. You must also save for stamp duty, solicitor’s and surveyor’s expenses and moving fees. Purchasing furniture and home appliances for the home are other expenses to consider. Finally it’s worth taking the time to plan for the bills you will need to pay every month. New or Used Home? If you are thinking of buying a house 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 properties that developers wish to sell. There are some great deals available on new properties with many developers lowering asking prices by as much as 10%. Many developers are offering incentives such as free white goods or assistance with finding a deposit. In general new homes are also less expensive to run and will come witha 10 year manufacturer’s warranty.

Shared Ownership

Shared ownership schemes have grown to be much more common recently. They enable people to buy a share in a house which they normally would not be able to afford . A mortgage is paid on the portion of the property you own and rent to a housing organization that owns the other share. You can increase the share of the home you own over time so that eventually you can own 100% of it. Another option you could consider is buying a house with a group of your friends. While this can seem like a good idea it can be fraught with stumbling blocks for the unwary. Make sure that you use a solicitor to draw up legally binding agreements.

Looking for new homes West Midlands? Visit the new and improved What House site.