Renters ‘just months away’ from home ownership

Nash Mills Wharf, Hemel Hempstead

Nash Mills Wharf, Hemel Hempstead - Credit: Archant

Home ownership could be closer than many renters think, according to new research.

A survey from Linden Homes found that the average tenant spends £6,716.31 per annum on their rental costs – £559 per month that could be put towards a deposit.

Simon Pendlebury, sales and marketing director at Linden Homes Chiltern says: “Rental costs mean that generation rent continue to feel trapped in the cycle of paying into someone else’s pocket so it’s no wonder then that renters aspire to be free of that burden.

“However, with the additional help of schemes such as Help to Buy, home hunters only require a minimum of 5 per cent deposit of the home’s value to qualify for a mortgage.

“Based on a minimum 5 per cent deposit of £10,450 (using Help to Buy on an average home priced at £209,000) homeowners could be paying as little as £570.79 per month.”

A recent government housing survey found that the so-called Bank of Mum and Dad continues to provide many young adults with a much-needed cash injection; 27 per cent rely on family and friends for help in getting their deposit together, with £16,000 being the average amount being lent or gifted.

The survey of 2,000 people also revealed that 40 per cent of tenants have been renting for at least nine years.

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Over 57 per cent of those surveyed feel that owning their own home is very important – but 30.75 per cent don’t believe they will achieve this goal in their lifetime.

Over 50 per cent said they are not happy with renting, while 31 per cent feel that renting is a waste of money.

Simon continued: “Buying your own home is an exciting time, especially when you have been in rented accommodation for a number of years and perhaps felt restricted in your rental property. For most, the biggest advantage of all is that you will be paying off your own mortgage rather than someone else’s.

“The recent lowered mortgage rates are also a positive step towards making home ownership more achievable. These lowered rates, in addition to schemes such as Help to Buy make it a good time for buyers to get onto the ladder.”

Linden Homes has a number of homes available for Help to Buy, including Empire Court in Borehamwood and Nash Mills Wharf in Hemel Hempstead.