New research claims a million more young people are likely to find themselves living with their parents over the next decade – with affordability of housing the suggested main reason.
According to a study by insurance company Aviva, a forecasted 3.8 million people aged between 21-34 will be living at home by 2025 – that’s a third more than at the moment.
It also revealed that 57 per cent of home buying hopefuls would move back in with family to help save for a deposit, and that the number of households containing two or more families is also expected to rise, from 1.5 million to 2.2 million.
However, there is hope for the many first time buyers locally – thanks to the Help to Buy scheme offered by new homes developers, in conjunction with the Government.
Moving can be more affordable through the Help to Buy scheme, which has been used extensively by first time purchasers and existing home owners in the Linden Homes Midlands region.
For example, 60 per cent of the new homes at the Saxon Garden development in Huntingdon, Cambridgeshire were sold through the scheme.
And across Bedfordshire, 72 per cent (almost three quarters) of the homes have been sold through the incentive – according to figures released earlier this year.
Help to Buy, which was launched in April 2013. Here’s how it works:
- Help to buy is available on new build homes up to £600,000
- Purchasers need a minimum five per cent deposit.
- All homebuyers could be eligible, not just first-time buyers.
- The government will lend you up to 20 per cent of the value of your new build property through an equity loan, which can be repaid at any time or on the sale of your home. This loan is not available on second hand homes.
- Buyers will only need to secure up to a 75 per cent mortgage from a bank or building society.
Linden Homes Midlands’ sales director Clare Phillips said: “Our teams are dealing with first-time buyers every day and it’s a real shame that so many are struggling with the prospect of owning their own property - especially when so many clearly place a lot of importance on having a home they can call their own.
“So many people get property ladder anxiety; they look at local homes on the market and do the calculations themselves based on a 20 per cent deposit without actually speaking to experts in the field. What they don’t always consider is the schemes available to help make that house purchase, a possibility.
“The advent of Help to Buy unlocks so much potential for this market to get onto the property ladder. We are often asked, ’what’s the catch?’ But put simply, it has never been a better time to buy a new build home.
“Buyers can save thousands of pounds off their dream home – both in costs at the outset and on monthly payments too. People are only allowed to buy what they can afford – so this isn’t something to be scared of.”
Clare added: “Buying a home can seem like a daunting process; but we aim to make the procedure as easy as possible. We’d encourage those who are living with family or renting, and who are curious about getting on the property ladder to come and meet our teams to hear more about the schemes available and how we can make them work for you.”
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For further press information please contact Cetti Long at Media Matters on 01733 371363 or email cetti@mediamatters-pr.co.uk
