The UK housing market has seen lots of ups and downs( mostly downs) during the last few years. However there are indications the market has eventually begun to stabilise and many industry experts are predicting small price increases for many areas. The most recent information from the housing website Zoopla showed that the cost of the average home in the UK increased by £5,000 in the 6 months to July. So is now a great time to buy if you are a first-time buyer? While prices have gone up slightly they are still less than they were at this time last year. Forecasts for 2011 and 2012 vary considerably depending on where they come from. However many experts are of the viewpoint that the market will remain flat or see small price rises. So if you’re thinking about purchasing a home I would say do it now. Prices are not likely to drop and there are many excellent deals available on new houses. if you are going into the market for the very first time here are a couple of tips to help you out.
Mortgage and Other Expenses
The need for large deposits by most lenders is one of the principal reasons for the lack of activity in the market. With a lack of new buyers entering the market it is taking a lot longer for properties to sell. In fact the number of sales in 2010 reached a record low. However while 10% home loan deals are still the norm there are indications that lenders are easing their restrictions on lending slightly. There are now far more 95% mortgage loan deals available with competitive rates. Obviously there are a number of other things that you have to save and budget for as well as a deposit. You’ll have to pay for stamp duty, solicitor’s costs, surveyor’s fees as well as land registry fees. Don’t forget the cost of furnishing your house and the fact you will be paying the bills on your own. This can come as a shock if you’ve been living ina shared house or with parents. New or Used Home? With the low level of activity in the house market there’s a large stock of unsold new homes readily available. Many developers are offering some great deals and incentives on the homes they have to make them sell quicker which can add up to 10% of the asking price. New properties today are built to fantastic standards and will come with a 10 year warranty for complete peace of mind. Whilst a second hand home might be a little cheaper it will cost much more to take care of and heat.
Shared Ownership
Shared ownership schemes have become much more common in recent times. They enable people to purchase a share in a house which 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 over time so that ultimately you can own 100% of it. Joining a shared ownership plan means that you don’t have to save for years to find a huge deposit and you can get on the property ladder much sooner. Another option you could think about is purchasing a house with a group of your friends. This might seem like an attractive option but can have its downside. Ensure that you make use of a solicitor to draw up legally binding contracts.
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