Owning a property could be a closer reality than most think
Those trapped in rented accommodation could afford to buy a new home within just months according to a new piece of research* conducted by Linden Homes. The findings from a recent survey by the housebuilder found that the average renter spends £6,716.31 per annum on their rental costs working out at £559 per month – an amount that could be saved to put towards a deposit to buy a property.
A recent government housing survey found that Bank of Mum and Dad continues to be relied upon with 27% of young adults relying on family and friends for help with a deposit1 with the average amount being lent or gifted being £16,0002 . Findings from the survey commissioned by the top five housebuilder revealed that 18 per cent would find other ways to fast track saving by living with family or friends.
Nigel Palmer, managing director at Linden Homes South West, comments: “Rental costs mean that generation rent continue to feel trapped in the cycle of paying into someone else’s pocket so it’s no wonder then that renters aspire to be free of that burden. However, with the additional help of schemes such as Help to Buy, home hunters only require a minimum of five per cent deposit of the home’s value to qualify for a mortgage. Based on a minimum five per cent deposit of £10,450 (using Help to Buy** on an average home priced at £209,0003 ) homeowners could be paying as little as £570.794 per month.”
It also emerged from the survey that an astounding 40 per cent of renters have been renting for nine or more years. Regardless of this lengthy time in rent, most renters (over 57%) feel that it is very important to own their own home. However, despite this ambition, approximately a third (30.75%) of those surveyed don’t believe they will be a home owner in their lifetime.
1Gov.uk: English housing survey 2014 to 2015: first time buyers and potential home owners report, July 2016
2Legal & General, The Bank of Mum and Dad Report, May 2016
3ONS House Price Index: April 2016
4Based on Nationwide 2 year fixed mortgage at 1.89% over a 30 year term
Those renting also cited their dissatisfaction with their current property: Over 50 per cent said they are not happy with renting and when asked how they felt about their current rental property, outlined multiple negativities, including that the property doesn’t suit their taste (15%), that their property is too small (25%) or there is too much wrong with the property (16%). In addition, over a quarter (26%) of renters feel restricted that they can’t decorate the rental property as they would if it was their own and over a third (31%) of all renters feel like renting is a waste of money.
Nigel continued: “Buying your own home is an exciting time, especially when you have been in rented accommodation for a number of years and perhaps felt restricted in your rental property. When owning your own home you can look forward to decorating the space with your own individual taste to suit your lifestyle and interests. For most, the biggest advantage of all is that you will be paying off your own mortgage rather than someone else’s.
“The recent lowered mortgage rates are also a positive step towards making home ownership more achievable. These lowered rates, in addition to schemes such as Help to Buy make it a good time for buyers to get onto the ladder.”
Linden Homes has a number of homes available for Help to Buy including at Tithe Barn in Exeter, Kings Gate in Kingsteignton, Orestone View in Goodrington, White Rock in Paignton, Camomile Lawn in Totnes, Beechfield Grove in Plymouth, Meldon Fields in Okehampton, Three Rivers in Truro and Boslowen in Camborne.
You can check out the Help to Buy cost calculator on Linden Homes’ website to see what value property you could buy and availability in your area: www.lindenhomes.co.uk/helptobuy.
* Study surveyed 2,000 people across the UK aged from 18 years to 55 years+ conducted by 72 Point in May 2016.
**The Help to Buy scheme then provides a 20 per cent equity loan from the Government (including first time buyers and home movers) or 40 per cent on the Help to Buy London scheme without being charged loan fees for the first five years.
Media can contact Emma Mackay on 077383 12960 for more information, images and interviews with Linden Homes.
09 September 2016
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