Wow I'm shocked at everyone saying "yes, buy a house now". Since the last Labour government destroyed the world financial markets they, and the current government, have been going out of their way to prop up house prices by keeping interest rates at unsupportably low rates, giving direct subsidies to new buyers and huge bailouts to lenders.
Make no mistake though, they can't keep it up forever. They will run out of our money to spend on the subsidies (well OK that happened years ago) and market forces will win the day eventually. Interest rates have to go up sooner or later and when they do, they could (and in my view probably will) rise very quickly indeed. Interest rates are only partly linked to the UK economy - they are influenced just as much, or maybe even more by other countries' interest rates and it looks likely that others, particularly the US, will be increasing theirs soon and ours will have to follow suit. If (when) inflation gets out of control, then they will have to go up substantially. All the subsidies to borrowers are being paid for by government borrowing anyway and one day we will have to bring our public finances under control.
So in a nutshell, now is the worst time to buy a house for a few decades. If you do, your mortgage payments are going to spiral out of control while the value of your house drops like a stone. Do you really want a £100,000 mortgage at 9% so you can live in a house worth £60,000?