The housing industry in the united kingdom has been in a state of uncertainty for the last few years. However indicators are starting to appear that the market has reached its lowest point with many different industry experts forecasting small increases within the next 12 months. Data published by Zoopla in July reported that average house prices rose by about £5,000 in 2011 with the average home in the UK now costing £216,534.
So if you’re a first time buyer is it a good time to go into the market? Whilst prices are on their way up once again they are still at lower levels than July last year. Predictions for 2011 and 2012 differ considerably depending on where they come from. The overall consensus is that prices will increase a little or remain flat. So if you are a first time buyer now is a good time to start looking. While prices may not rise much further they are unlikely to drop and you will find some great deals from many home builders on new homes.
if you are going into the market for the very first time here are a handful of tips to help you out.
Mortgage and Other Expenses
The need for big deposits has slowed activity in the housing market significantly. With a lack of new buyers entering the market it’s taking considerably longer for properties to sell. In fact the number of sales in 2010 reached a record low. However while most lenders still reserve their best deals for those with a 10% or bigger deposit there are signs of the restrictions on lending easing. There are now far more 95% home loan deals available with competitive interest rates.
Of course there are a number of other things you need to save and plan for as well as a deposit. There is stamp duty to pay for on many homes, solicitor’s expenses and surveyor’s fees as well. Do not forget the cost of furnishing your house and the fact you will be paying the bills by yourself. This can be 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 of buying a house should you choose a new or a used one? With the recent lack of activity within the housing market a lot of developers find themselves with a large stock of unsold new homes on their hands. You can find some great deals on new homes with many developers reducing asking prices considerably. In addition to reducing prices several developers are offering other incentives like help with finding a deposit, part exchange programmes and free white goods and appliances. New build homes will also include a free 10 year warranty from the developer and are a lot cheaper to run and maintain.
Shared Ownership
Shared ownership is one of the best ways for many first-time buyers to be able to afford their first property. You take out a home loan for the portion of the property you own and pay rent on the other portion to a housing organization. With time you increase the amount of the property you own. There are many shared ownership programmes in the UK with many of them aimed at key workers like medical workers, firemen and teachers.
Another option is to consider purchasing a house with a few of your close friends. This may seem like an attractive option but can have its downside. Make sure that you use a lawyer to draw up legally binding agreements. Find the best new homes Edinburgh with What House?