Those considering buying a home with other people have been urged to consider drawing up legal papers to help them protect their interests.

Research released last year by Scottish Widows revealed that the number of graduate first-time buyers who are buying with friends, partners or family members is rising, up from 69 per cent in 2006 to 72 per cent in 2007.

Helen Adams, managing director of advice website FirstRungNow, explained that while joining forces with other people to make a purchase can be a "good" opportunity to get onto the housing ladder, people should be careful to ensure they get a fair deal.

"There are measures that can be put in place to reduce the risks associated with joint ownership," she said.

"If you are going to buy with someone else you need to make sure you have a tenancy in common and that you have a trust deed drawn up to identify who owns what proportion of the property."

Ms Adams also highlighted the usefulness of cohabitation agreements, which make it clear how much each person has contributed to the mortgage and defines what share of any equity that has built up in the property each is entitled too.