How can we help first-time buyers get on to the property ladder?
PUBLISHED: 10:58 01 February 2019
As the number of young people living at home continues to increase, Edward Parker looks at the ways to help them on to the property ladder.
Figures show that one quarter – that’s 3.4 million – young adults are now living at home, a figure that has been gradually increasing year on year. The situation is compounded for some by stagnant wages, precarious employment, unpaid internships and student debt.
So what is on offer to help with the cost of housing? There’s no doubt that the Government’s Help to Buy Scheme which is scheduled to run until 2023, is a great help to this group who may need assistance in raising the deposit.
The Scheme requires buyers to raise a deposit of just 5pc and is currently available on new homes up to a maximum purchase price of £600,000.
Another great scheme to help buyers, but probably of particular interest to first-time buyers, is purchasing your new home on a shared equity basis. This means that buyers fully own their own homes by taking out a mortgage typically covering 75pc of the property value and then have the opportunity to buy the remaining 25pc equity share, on which no rent is charged.
The advantage of this is that unlike shared ownership schemes, no fees or interest are payable, and neither is there a repayment deadline as there is with Help to Buy after which interest is charged.
As a company we are currently offering this opportunity at our developments at Saxon Green in Ashill and The Signals in Watton – and soon at Church Meadow in Sproughton.
For example, at Saxon Green, there is a particularly good deal for buyers who can purchase a two bedroom apartment for just £112,500.
Shared equity is an option that is proving increasingly popular with buyers who can make the move from renting to owning their own home in a truly affordable way.
For more information, telephone 01284 766057 or visit www.bennett-homes.co.uk.
This column is sponsored by Bennett Homes.