Part-buy ‘keeps dream alive’ as young priced out
OUR low-cost home ownership option continues to offer affordable
hope for young first-time buyers who fear being squeezed out of the
Their concerns were brought into sharp focus this week when a
new report revealed that the number of homebuyers aged 18-30 had
fallen to a record low − accounting for just 3% of June house
sales − and again by the English Housing Survey**, which
reported a dramatic increase in the number of young people who've
turned to private renting because they can't afford to buy.
Rising property prices, stagnant pay and tougher borrowing rules
are all behind the big fall in young homebuyers, according to the
National Association of Estate Agents*, which published figures
Bromford Homes Head of Sales Alan Bradley agrees. "It's a tough
time for first-time buyers − and it's not getting any easier
now that the average house price in England of just over £200,000
is roughly ten times the typical salary for a first-time buyer," he
"The National Association of Estate Agents report mirrors what
our own customers tell us − that buying a first home on the
open market is out of their reach and the gap between house prices
and what they can afford is getting wider.
"The good news for them is that they have been able to make
their property dream come true thanks to the low deposits and
affordable monthly costs that come with shared
ownership − and with our equity loan deal
at Colliers Green.
"We can't help everyone, of course, but the figures speak for
themselves. We've sold roughly 30 shared ownership
homes across central England since April and that's on the back
of a record-breaking year,
when we achieved more than 210 sales − many of them to buyers
in their 20s.
"That doesn't change the very real problems that face first-time
buyers but it does keep the dream alive by offering them some
equally real − and affordable − hope of being able to
take that crucial first step onto the property ladder in these
First-time buyers Anna Malarska, 28, of Oaklands,
Rugby, and Thomas Turner, 24, of St
Mark's View, Cheltenham, are typical of Bromford Homes customers
who've seen their property dreams come true. Both praise shared
ownership and recommend the unique part-buy, part-rent formula to
other first-time buyers who, like them, can't afford open-market
"Shared ownership is the perfect
solution for first-time buyers like me who can't afford a big
deposit or a big mortgage but want to get on the property ladder
and invest in their future," says Anna, pictured above. "We love
our Bromford home and we love the area... and it's cheaper for me
than the house I was renting before."
First-time buyers Dan Bailey and Kate Fry, both 22, are equally
enthusiastic about our second affordable homebuyer option, equity loan, on offer −
alongside shared ownership − only at our Colliers Green development
between Nuneaton and Coventry.
"Home ownership gives us more security than we had as tenants,
something that we can call our own," says Kate, pictured below with
partner Dan and son Liam. "This way we are investing in the future
for Liam − and living in a lovely, comfortable, modern home that's
so much better than anything we lived in before... and cheaper than
private renting. We're happy with our home − and with the shared
* The NAEA analysed home purchases in June and tracked the
percentage of buyers that fell into each age group. Their results
show that just 3% were ageed 18-30, nearly half (48%) were aged
31-40, 39% were aged 41-55, and 10% were 56 and over. ** English Housing Survey key findings.
To find out more about low-cost home ownership and how it could
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22 July 2014