Housing Association News for the UK

Forecasting the way the United Kingdom property market will behave within the next 12 months is never easy. The last few years have seen numerous industry experts make bold claims about recovery that never actually materialised. However now there are signs that the market has reached its lowest level and could be on the way up once more. Many regions have seen small cost increases in 2011 with £5,000 being added to the value of the average house.

So is now a great time to buy if you are a first-time buyer? While prices are on their way up once more they are still at lower levels than July last year. Forecasts for 2011 and 2012 vary considerably depending on where they come from. Overall the general consensus seems to be the market will see some small gains but will remain fairly stable. So for first time buyers I’d say now is as good as time as any to enter the market. Prices are unlikely to drop and there are many great deals available on new properties.

if you are going into the market for the first time here are a couple of tips to help you out.

Mortgage and Other Expenses

The demand for big deposits by most 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 properties to sell. In fact the number of sales in 2010 reached a record low. However although 10% home loan deals are still the norm there are indications that lenders are reducing their restrictions on lending a little. There are now far more 95% home loan deals available with competitive interest rates.

Of course there are a number of other things that you have to save and budget for in addition to a deposit. On some properties depending on the price you’ll have to pay stamp duty . You will also need to plan for solicitor and surveyor’s fees and also land registry costs. Do not forget the cost of furnishing your home and the fact you will be paying the bills on your own. This is often quite an increase in your monthly budget if you’ve been living with your parents or in shared accommodation.

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 in the housing market many developers find themselves with a big stock of unsold new properties on their hands. You can find some terrific deals on new homes with many developers lowering asking prices significantly. Many developers are offering incentives including free white goods or assistance with finding a deposit. New build homes will also have a free 10 year warranty from the builder and are much cheaper to run and look after.

Shared Ownership

Shared ownership schemes have become a lot more common in recent times. They enable people to buy a share in a house that they normally would be unable to afford . A mortgage is paid on the part of the property you own and rent to a housing organization that owns the other share. It is possible to 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 scheme means that you don’t have to save for years to get a large deposit and you can get on the property ladder much quicker.

Another option is to think about purchasing a home with some of your friends. This may appear like an attractive choice but can have its downside. Make sure that you make use of a lawyer to draw up legally binding agreements. For the latest about housing associations visit the website.