EXPERTS
Can I qualify for shared ownership?
Q Although I’ve been saving for a while and was hoping to buy a small house or apartment, I still don’t have enough for a deposit. I’m currently renting on the outskirts of Dunstable and ideally looking for a two bedroom property in the same area, if possible. Do you think I might qualify for shared ownership, even though I’m on my own so only have a single income? I’m a newly qualified social worker and need to be around the Dunstable area. With prices going up all the time, I’m concerned that I may need to move further away in order to afford my first home. Any advice would be much appreciated. Thank you. Helen Grainger, Dunstable A It’s very likely you may be able to qualify for shared ownership, as the deposit will be much lower.The good news is we have an affordable scheme called Ashwood Green in Houghton Regis, which is very close to Dunstable. Prices start from £110,250 for a 35% share for a two bedroom house and from £126,000 for a 35% share of a three bedroom house.We can also recommend an independent financial adviser who specialises in shared ownership, to check that you could qualify. Do visit grandunionliving.co.uk for more information. More good news for potential buyers like yourself, is that the Government has just introduced a new shared ownership product, which will allow the purchase of initial shares as low as 10% on some schemes. Benefits of this new product are that you’ll be
Ashwood Green
able to purchase additional shares as you can afford to do so, in as little as 1% portions instead of the current 10% minimum (this process is known as staircasing). For full details, please take a look at sharetobuy.com which has all the latest news on the new model, and you can search for properties in your area as well. It’s worth noting though, that the old product will still be in existence for some schemes so you’ll need to check with each provider which products they’re offering. Good luck with your search!
Sue Dance
Why buy a new build
Q My partner and I are can’t decide on whether to focus our search on new builds or older, more established properties. What would be the main advantages of buying a new build home? Rob Matthews, Harlow A Buying a new build home can currently saving to buy our first home together, but we offer a range of benefits. They are often significantly more energy efficient and, therefore, most cost-efficient when it comes to energy bills. For example, in the two years to September 2023, 84% of new homes in London achieved an A or B rating on their energy performance certificate (EPC), compared to just 6% of secondhand properties. Recent analysis from our research team found that purchasing a new build home over a secondhand home can save an average of 55% on annual energy costs (including lighting, heating and hot water) and there are some lenders offering “green mortgages” which grant better interest rates or cashback to buyers purchasing more energy-efficient homes, providing another way to save.While increased energy prices have been a major driver for
often come with a 10-year warranty from the NHBC, which adds reassurance.While we expect the housing market to start recovering once the bank base rate starts to fall and inflation eases from mid-2024, the reasons for why people choose to purchase a new build home over a secondhand one are likely to remain, particularly for budget-conscious first time buyers and those looking to maximise their energy cost savings.Whichever way you decide to go, we wish you the best for your search.
buyers looking to save on monthly costs, low maintenance and renovation costs is another – with almost 80% of our survey respondents listing this as a priority for buying a new build. Inflation rising by 17% over the last two years means construction costs have increased significantly – the cost of concrete is up 14.4% on last year (according to ONS).We’re therefore seeing less demand for homes which need improvement work as buyers need to factor in these increased expenses. As such we’re seeing some buyers favour new build homes which are ready to move into and
Toby Greenhow
First Time Buyer February/March 2024 103
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