Help to Buy Slashes Cost of Living for Renters
Help to Buy NW Guest Blog
The new-build housing market is going from strength to strength as more North West renters are taking those exciting first steps onto the property ladder, avoiding the rise of the UK’s rental costs.
With private rents creeping up faster than mortgage costs, the average renter outside of London is now paying £739 per month, according to recent figures. Many are blaming the UK’s housing shortage for the increase in rent, which is putting added pressure on people who are struggling to save for a deposit for a house.
So what does this mean for first time buyers? This ongoing surge in rental costs has prompted younger buyers to take advantage of schemes such as Help to Buy in a bid to burst the rental bubble and invest in their future. Why? Expensive deposits have become the main hurdle for first time buyers, so a smaller 5% deposit with Help to Buy is making all the difference.
In fact, one of our most recent buyers at Queen Mary Place in Liverpool described their rental fees as ‘dead money’ and is now saving £280 each month compared to when they were renting! Another couple at NGV Liverpool are set to celebrate a monumental year with both a wedding and investment into their first home – something that many buyers would struggle to save for without Help to Buy.
Of course, it’s not just first time buyers who are benefiting from the Help to Buy scheme. Last year saw a real increase in second, third and fourth time buyers taking advantage of the government-backed scheme to upscale into more spacious, family homes.
Stephenson Grove couple Colin and Carol stepped off the property ladder six years ago and chose to rent until their dream home came along. Following the launch of the Rainhill development, the couple were quick to take advantage of the Help to Buy scheme in order to secure their perfect family home.
So what does this mean for house building in 2016? Increasing rental costs are prompting first time buyers to invest in their own home, which means that demand for high quality homes continues to rise for both first time buyers and second steppers alike. This, coupled with an increasing demand for larger housing, has sparked the launch of more premium developments across the region, including the recent launch of our Egerton Grange site in Worsley and upcoming show villages in Standish and Walkden.
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