Is the New Year the best time to break a costly rental cycle? - 8848

Is the New Year the best time to break a costly rental cycle?

New year

The New Year could mean a new home for people locked in a costly rental cycle as Help to Buy proves a lifeline for many aspiring homeowners.

With the average UK rent rising throughout 2016 by 3.1% to £898 the average person has to rent for around four years before they can afford to buy their first property.

Nadine O’Dowd, sales and marketing director for regional developer Persimmon Homes North Midlands, fears people are losing tens of thousands of pounds in rent before getting on to 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: “It’s not unusual for people to rent for up to 20 years and in the process pay over £200,000 to landlords before getting their hands on their first home or apartment.”

However, she said the Government’s Help to Buy scheme had provided a real lifeline. The initiative allows buyers to purchase a property with only a 5% deposit and helps to fund up to 20% of the purchase price in the form of an equity loan.

Nadine 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 per annum energy costs are 53% less in a new build home compared to any other type of house which could save people around £890.

“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 2017 by getting on to the property ladder.”

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