The rental bubble is about to pop for North West renters who are taking advantage of the booming, new-build housing market, and schemes like Help to Buy, to get onto the property ladder and avoid rising rental costs.
With private rents creeping up faster than mortgage costs, the average renter outside of London is now paying £668 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 house deposit.
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 is making all the difference.
In fact, two of our youngest buyers managed to buy the home of their dreams thanks to the Help to Buy scheme at our Barrowcroft Green development in Greater Manchester, Matthew said: “The Help to Buy scheme really went a long way in making this a reality for us!” Another couple at NGV Liverpool celebrated 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 over 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.
Highfield Green in Kirkby has been extremely popular with first time buyers due to its affordability through Help to Buy. Plus its generous first time buyer package on select homes, which includes fitted flooring, curtains / blinds, light fittings and £500 towards legal fees, makes them perfect starter homes.
So what does this mean for house building in 2017? 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 Clarendon Place site in Gee Cross and upcoming show villages in Gateacre and Knowsley.