Forecasting how the UK property market will behave in the next 12 months is rarely easy. Over the last couple of years we have seen several false dawns and claims of recovery that never materialised. However a number of signs are starting to appear that the worst may be over for UK homeowners. Many places have seen small increases in value this year and the trend seems set to continue into next year as well.

So is now a good time to buy or should you wait a little longer? While prices have risen slightly they are still lower than they were at this time last year. 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 modest increases but will remain fairly stable. So if you are a first time buyer now is a great time to start looking. Prices are not likely to drop and there are some excellent deals available on new homes.

If you’re thinking about buying your first house in the near future here are a couple of quick tips to help you out.

Mortgage and Other Costs

Saving a 10% or even bigger deposit can take years and is a reason for the recent lack of activity in the housing marketplace. The days of 100% or higher mortgages are well and truly over. These days you need a minimum of a 10% deposit if you wish to get the best deals with the lowest rates of interest. However some 95% home loan deals at competitive rates have started to appear for people with a good credit rating.

When you are saving for your house there are lots of other costs you need to think about as well as the deposit. You will need to pay for stamp duty, solicitor’s costs, surveyor’s fees and also 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 is often quite an increase in your monthly budget if you have been living with your parents or in shared accommodation.

New or Used Home?

Should you invest in a used or new property? With the current lack of activity within the housing market many developers find themselves with a large stock of unsold new houses on their hands. You can find some terrific deals on new properties with many developers lowering asking prices substantially. Many developers are offering incentives including free white goods or assistance with finding a deposit. In general new houses are also less expensive to run and will come witha 10 year guarantee.

Shared Ownership

Shared ownership schemes have become increasingly popular for first-time buyers. You take out a mortgage for the part of the house you own and pay rent on the other portion to a housing association. Over time you increase the amount of the home you own. There are lots of shared ownership programmes across the country and they are often a great way to get on the property ladder particularly for key workers like nurses, teachers and police.

Another option you could consider is buying a residence with a group of your friends. This might appear like an attractive option but can have its downside. Make sure that you use a lawyer to draw up legally binding agreements. To find out more about new build homes in the UK visit the WhatHouse? website.