The National Association of Estate Agents is advising people looking to buy a home with family, friends or a partner to think carefully before committing to a purchase.

Pooling deposits and income to purchase a property can offer huge benefits as competition within the property market increases in 2014.

The latest NAEA market report shows that the number of house hunters registering with member agents is at its highest level since May 2007.

Jan Hÿtch, president of the NAEA, said: “Joint ownership can offer a novel route on to the property ladder, especially if finances are tight.

“However, the decision to buy with another has to be taken objectively, and in the right circumstances.

“Even buying with a family member can pose problems if you are not wholly agreed on your intentions for the property.

“Buying jointly requires a lot of trust, transparency and above all good planning.

“Drawing up a formal legal agreement is one way to give all parties a degree of security, but ultimately taking the time to make a carefully considered decision is the best precaution you can take.”

For anyone considering a joint ownership arrangement, the NAEA recommends the following: HAVE REALISTIC EXPECTATIONS If you are buying with a friend it is important to remember that circumstances like jobs, relationships and family can change very quickly, so always be honest when outlining your reasons for buying together.

Purchasing in this way should be treated as dispassionately as possible.

Make sure you know whether the purchase is to be treated as an investment move for both parties. If so, agree your preferred timeframe until resale and an acceptable level of profit.

WHAT’S THE WORST THAT COULD HAPPEN?

One of the benefits of buying with longstanding friends or family should be an inherent level of mutual trust.

However, this doesn’t mean it isn’t worth consulting lawyers about a legally binding co-ownership contract and agreeing in advance what will happen if one owner’s circumstances change.

IN FOR A PENNY… There are mortgages that are specifically geared towards this type of purchase, so shop around for the best deal.

Remember that a combined income may make it possible to secure a mortgage of higher value, giving you a wider choice of properties.

ALWAYS LEAVE A PAPER TRAIL All paperwork relating to the property or mortgage must be in the names of the cobuyers.

Remember to get any agreements written down to ensure there is always a record of joint decisions.

Making copies of all documents associated with the purchase is a good idea as it allows them to be readily accessible to both parties.

Remember to treat decisions about the house as business transactions, regardless of who you are buying with, and ensure important agreements are recorded in writing.

WHEN WHAT’S MINE ISN’T ACTUALLY YOURS As well as any legal agreement, drawing up a comprehensive list of non-shared items or other costs at the start of the shared ownership can reduce confusion if a property is sold at a later date.

This measure should also be useful if one party decides to move out whilst retaining their share.