Predicting the way the United Kingdom home market will behave within the next 12 months isn’t easy. The last few years have seen many industry experts make strong statements about recovery that never really materialised. However it finally looks like the recovery is on the way for most parts of the country. Many areas have seen small increases in value this year and the trend seems set to continue into next year as well. So is now a good time to purchase or should you wait a little longer? While prices have gone up slightly they are still lower than they were at this point last year. 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 stay fairly stable. So for first-time buyers I would say now’s as good as time as any to go into the market. The cost of property is not likely to fall and while any rises might be small they’ll only add to the expense of buying a house. if you are entering the market for the first time here are a handful of tips to help you out. Mortgage and Other Costs This is the largest obstacle for most people and one reason why the marketplace is so flat at this time. The times of lenders being prepared to give 100% mortgages are gone. Nowadays most financial institutions and building societies demand a 10% deposit to get the best deals. However some 95% mortgage deals at competitive rates have started to appear for those with good credit. A deposit is of course just one of the many things that you will have to save for. You will also need to save for stamp duty, solicitor’s and surveyor’s charges and moving fees. Purchasing furniture and home appliances for the home are other expenses to consider. Finally it is well worth taking the time to plan for the bills you will need to pay every 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 within the housing market many developers find themselves with a big stock of unsold new properties on their hands. There are some excellent deals available on new properties with lots of 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 houses are also cheaper to run and will come with a 10 year manufacturer’s warranty. Shared Ownership The popularity of shared ownership schemes has grown considerably in recent years. They allow people to buy a share in a property that they otherwise would be unable to afford. A mortgage is paid on the part of the property you own and rent to a housing organization that is the owner of the other share. You can increase the share of the home you own with time so that ultimately you are able to own 100% of it. Joining a shared ownership program means that you do not need to save for years to get a large deposit and you can get on the property ladder much quicker. Another option is to consider buying a home with some of your close friends. This might seem like an attractive option but can have its downside. Always use a solicitor to draw up agreements and ensure that everybody knows their obligations and responsibilities.

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