Predicting which way the united kingdom property market will go is not easy. The last few years have seen several industry experts make bold claims about recovery that never really materialised. However now there are signs the market has reached its lowest level and could be on the way up once again. Many regions have seen small cost increases in 2011 with £5,000 being added to the value of the typical property. So is now a good time to buy or should you hold out a little longer? Although there have been some gains prices are still lower than they were at the same time a year ago. The outlook 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 remain fairly stable. So if you’re thinking about buying a home I would say do it now. Prices are unlikely to drop and there are some excellent deals available on new houses. If you’re thinking about purchasing your first home or flat here are some tips:
Mortgage and Other Costs
The requirement for big deposits has slowed activity in the housing market significantly. With relatively few new buyers going into the market the volume of properties sold reached a record low in 2010. However while most loan companies still reserve their best deals for those with a 10% or greater deposit there are signs of the constraints on lending easing. There are now far more 95% home loan deals available with competitive rates of interest. A deposit is needless to say just one of the many items that you will have to save for. You will also need to think about stamp duty if the property is over a certain value, solicitor’s costs and moving fees. Purchasing furniture and home appliances for the home are other expenses to take into account. Finally it’s worth taking the time to plan for the bills you will have to pay each month. New or Used Home? Should you purchase a new or used property? With the current state of the housing market there’s a large stock of new houses that developers are keen to sell. There are some great deals available on new houses with lots of developers reducing asking prices by as much as 10%. Many developers are offering incentives like free white goods or assistance with finding a deposit. Generally new houses are also cheaper to run and will come with a 10 year manufacturer’s warranty.
Shared Ownership
Shared ownership schemes have become increasingly popular for first-time buyers. With a shared ownership program you pay a mortgage on the share of the home you own and pay rent on the remainder to a property association. Over time you increase the amount of the home you own. There are many shared ownership schemes across the country and they are often the best way to get on the property ladder particularly for key workers like nurses, teachers and police. Another option you could consider is purchasing a house with a group of your friends. This might appear like an attractive option but can have its downside. Always use a solicitor to draw up agreements to make sure that everybody knows their duties and responsibilities.
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