Is New Year the time to break costly rental cycle
18 December 2013
The New Year could mean a new home for people in the North East locked in a rental cycle as Help to Buy proves a lifeline for aspiring homeowners, according to Persimmon Homes North East.
Research by the leading builder has found that the average person has to rent for around four years before they can afford to buy their first property.
Debbie Zaben, sales and marketing director for the firm, fears people are losing tens of thousands of pounds in rent before getting on the property ladder. She also urged people to think about buying a new build as they could save thousands of pounds in fuel bills and DIY costs.
She said: “In the most extreme cases, we have found that people have been renting for up to 40 years and handed over £150,000 to landlords before getting their hands on their first home or apartment. On average, an estimated £18,000 is spent by each individual before they buy their first house.”
However she said the Government’s Help to Buy Scheme, launched in the Spring Budget, had provided a real lifeline as people only need a 5% deposit and 75% mortgage. The remaining 20% is made up of a Government-backed equity home loan, which is interest and repayment-free for the first five years.
Debbie added: “This research shows just how important getting on the property ladder is for people in this country; and just how difficult it is.
“Buying a home tops the list of the most important and expensive decisions that people make in life, so getting it right is critical. There are many reasons to buy a new-build property but their energy efficiency has to top the list.
“Statistics show that energy costs are 55% less in a new build home than any other type of house which could save people around £1,300.
“There are plenty of other reasons to buy new; such as first-rate loft insulation, draft free double glazed windows and doors, no DIY, maintenance or repairs to do at weekends, no upward chain, a 10-year insurance backed warranty from the NHBC with new fully-fitted kitchen, bathroom and in some cases an additional en-suite and dressing room. There are plenty of reasons to start 2014 by getting on the property ladder.”