Why would you choose to rent a property when you could buy a home for less?
That is the question Persimmon Anglia is asking, as first time buyers in Diss weigh up their options.
Figures show that people could in fact save more than £100 a month by buying a new build property in East Anglia rather than shelling out on a rented property.
Alison Page, head of sales and marketing, said: “Our national pride in owning our own home remains undiminished. Many people still harbour ambitions to invest their hard-earned cash into their own property.
“As a result, those people will eventually be able to say they own their own home after paying off their mortgage. The alternative is to pay a large amount in rent every month and never achieve the goal of owning a property.
“It’s true that more people have turned to renting – but in fact, the monthly repayments on a mortgage can be less than paying a landlord.”
Using the Government’s Help to Buy scheme, a mortgage on a £169,950 three bedroom Chester house at Persimmon Homes’ Greenacres development in Diss, Norfolk, works out at approximately £594 per month at a two-year fixed rate*.
Renting a similar property in the area could cost considerably more each month. For example, a three-bedroom semi-detached house in the same postcode is currently being advertised at more than £700 a month.
Alison said that those who choose to rent will probably have to find less money up front – usually just a month’s rent in advance and a month’s rent as a deposit. And they will not be responsible for most of the maintenance costs of the property.
But they also won’t necessarily be able to decorate the property to their own taste and could be asked to move out at relatively short notice when the tenancy period is up for renewal. These restrictions mean tenants can never really put down roots and call the property ‘home’.
She said: “The biggest disincentive to most people is that no matter how much is paid out, tenants will never own the property, so many see renting as ‘giving money away’.
“There is no denying that you will almost certainly need to put down a deposit to buy a house, but the Help to Buy scheme certainly makes it easier for people to secure a mortgage with a lower deposit.”
For more information, call into any Persimmon Homes development to find out about the latest deals on offer.
*prices correct at time of going to press. Average mortgage repayment calculated across 25 years. Terms and conditions apply.