Making predictions around the United Kingdom property is not always easy. The last few years have seen several industry experts make bold claims about recovery that never really materialised. However it finally looks like the recovery is on the way for most parts of the country. Most regions have seen small but significant price rises this year with £5,000 being added to the value of the typical home.
So is now a good time to purchase or should you wait a little longer? While prices have increased slightly they are still lower than they were at this point last year. Predictions for 2011 and 2012 differ considerably depending on where they come from. Overall the general consensus appears to be that the market will see some small gains but will stay fairly stable. So if you’re a first time buyer now is a good time for you to begin looking. Prices are unlikely to drop and there are some great deals available on new homes.
If you are thinking about buying your first home or flat here are some pointers:
Mortgage and Other Costs
The demand for large deposits by many lenders is among the principal reasons for the lack of activity in the market. With a lack of new buyers going into the market it’s taking considerably longer for homes to sell. In fact the number of sales in 2010 reached a record low. However while most loan providers still reserve their best deals for people with a 10% or greater deposit there are signs of the restrictions on lending reducing. More 95% deals have begun to appear on the market and while the interest on them may be slightly higher they’re still competitive.
A deposit is needless to say just one of the many items that you will have to save for. You should also think about stamp duty when the property is over a certain value, solicitor’s fees and moving fees. Buying furniture and appliances for the home are other expenses to consider. Finally you will need to plan for bills that will be much larger than in shared accommodation or if you have been living with parents.
New or Used Home?
If you’re thinking about buying a house should you choose a brand new or a used one? With the recent lack of activity in the housing market a lot of developers find themselves with a large stock of unsold new houses on their hands. There are some great deals available on new houses with many developers reducing asking prices by as much as 10%. In addition to reducing prices many developers are offering other incentives like assistance with finding a deposit, part exchange schemes and free white goods and appliances. New build homes will also include a free 10 year warranty from the builder and are much cheaper to run and look after.
Shared Ownership
Shared ownership is amongst the best ways for many first time buyers to be able to afford their first property. With a shared ownership scheme you pay a mortgage on the share of the house you own and pay rent on the rest to a housing association. With time you increase the amount of the home you own. There are lots of shared ownership schemes throughout the country and they can be the best way to get on the property ladder particularly for key workers like nurses, teachers and police.
Another choice is purchasing with a friend or group of friends. This might seem like an attractive choice but can have its downside. Always use a solicitor to draw up agreements and ensure that everyone knows their obligations and responsibilities. Find quality new homes Birmingham with What House?
Comments Off