Part-buy deposits ‘offer hope’ as prices rise
SHARED ownership's low deposits offer real hope for first-time
buyers who fear they're being priced out of the property market by
soaring property values.
That's the reassuring reaction from Bromford Homes to a new
survey that reveals a whacking 16% increase in the average purchase
price − now at £155,832 − for first-time buyers on the
This big increase also bumped up the average first-time buyer
deposit to £27,500 in January 2014 − up £537 from a year
ago − according to the First Time Buyer Tracker from LSL Property
Bromford Homes Head of Sales Alan Bradley describes the
increases as depressing news for would-be homebuyers who are saving
hard so that they can afford to to take their first step on the
"We know how tough it is for first-time buyers to read these
headlines and see their dreams apparently move further and further
from their reach," says Alan.
"It's hard for these buyers − especially those on lower
incomes − to save that all-important initial deposit even
though many mortgage lenders are now prepared to offer them 95%
"Well, the good news for them can be summed up in just two
words − shared ownership. Instead of buying
your first home outright, you buy a typical share of say 45% and
that means your deposit can be as little as £2,700*.
"Compare that with the huge average deposit quoted by the new
survey and you can understand why so many first-time buyers are
saying YES to shared ownership and YES to a new Bromford home."
How does it work?
* With shared ownership, you buy between 25% and 75% of your new
home − the actual amount depends on what you can afford, with
around 45% being typical − and pay low rent on the remaining share.
This means, for example, that you can get on the property ladder at
Beeches (pictured above) in Northfield, Birmingham, for £54,000
− that's 45% of the remaining two-bed home with a full market value
of £120,000 − and a minimum 5% deposit of £2,700.
04 March 2014
Shared ownership buyers can increase the amount they own through a
process called staircasing. To find out more about shared ownership and Bromford
developments across central England call 0845 60 10
878 or register for updates. You can also
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