CONTACT OUR TEAM TODAY 01244 310 050

Search
Close this search box.

First Time Buyers Saving Thousands, Thanks To New Build Homes

Mortgage deals and cheaper running costs helping more first-time buyers on to the housing ladder.

The gap between house prices and incomes has continued to expand over the past twenty years and coupled with stricter lending to first-time buyers, fewer young people have been able to step onto the property ladder.

However, according to HBF, a new generation of first-time buyers are viewing new build homes as “the answer to their housing affordability problem”. The Help to Buy Scheme gives first-time buyers the chance to buy a new build home with a 5% deposit. The Government will then provide an equity loan for up to 20% of the purchase price.

With a combined deposit of 25% of the value of the property, first-time buyers are able to access a range of mortgages with lower interest rates and more affordable monthly payments, saving approximately £350 every month. Furthermore, research shows that new build homes are generally more energy efficient and can save first-time buyers up to £5000 per year in utility bills.

New build homes are also built for modern living. Everything inside is new and fit for purpose which means first-time buyers do not need to make allowance for major repairs or ongoing maintenance. Indeed, New Homes Week put the savings figure at £50,000.

According to the BBC, the latest figures show that just over 80% of the 134,558 properties purchased using the Help to Buy Scheme were first time buyers. Of these, 16,000 were new build homes, 81% of which were purchased by first time buyers with a deposit under £12,000.

Without a doubt, it is a huge challenge for today’s young people to step onto the property ladder. Since 2000, house prices have risen by more than £55,000 with first-time buyers needing to save £20,000 for a deposit and most are aged at least 30 before they become a homeowner. Deposit requirements far outstrip earnings but new build homes could be the solution. What will happen when the Help to Buy scheme ends in 2020?

Related Articles

The transformation of Centurion House, a former commercial building on Northgate Street in Chester, is approaching completion, creating 28 luxury apartments under a unique and...
Blueoak Estates has been granted planning approval for the construction of 32 luxury apartments on the site of the former fire station in the heart...
Grade II Listed Christleton Hall in Chester is set to enjoy the next phase in its evolution, through an epic transformation into 14 luxury apartments....
Blueoak Estates has begun work on its most ambitious project to date, transforming a large 1970’s commercial building into 110 luxury residential apartments....
Have a question about

your new home?