'Buy now and make most of our low prices'
THE PROSPECT of another big rise in property prices has prompted
a timely warning to first-time buyers on lower incomes from one of
our shared ownership experts.
That message is "buy now and make the most of current low-cost
opportunities to get onto the property ladder" with part-buy,
part-rent deal prices that start from around £54,000* and deposits
that can be just £2,700*.
The advice comes from Bromford Homes Head of Sales Alan Bradley
in response to a widely-reported forecast that UK housing prices are to soar
over the next four years as older people swap savings from pension
funds to property. Their flow of funds − triggered by changes
in last week's Budget − could see the price of the average UK
home rise by 30% or £100,000, it's claimed, and, according to Alan,
that's bound to have a knock-on effect for shared ownership prices
"The whole point of low-cost shared ownership is to make
homebuying possible for people who can't afford open market prices
but want a home that they can call their own. So as things stand,
you could buy a typical 45% share of a two-bed shared ownership
home at, say, Colliers Green (pictured below) near
Nuneaton, for just £55,125** and a minimum deposit of just
£2,757**," says Alan.
"These prices are a fraction of what a similar open market home
would cost but they are tied to that market and if those prices go
up − as forecast − then shared ownership prices will have
to go up too. Inevitably, that means some would-be buyers could
struggle or even miss out altogether in three or four years
"We're not trying to put additional pressure on buyers. Far from
it. We're just alerting them to the fact that if this forecast
becomes a reality the home you could buy today could cost
significantly more in a few years time."
His message to anyone who qualifies for shared ownership, has
saved enough to cover our typical low deposit of around £3,000 and
can afford the monthly payments is to think really seriously about
"You'll end up with an affordable home that you can call your
own and pay less on
average each month than you would if renting a similar home
from a private landlord," says Alan.
"Shared ownership is not only more affordable than private
renting − it's also more secure. That's crucial for young
families and other typical buyers who want to put down roots in a
particular area − usually near their family and friends, their
local school and where they work.
"They don't want to keep moving from house to house − often
at fairly short notice − as many renters have to do because
their landlord wants to up the rent or sell the property. Shared
ownership can give you the peace of mind you don't get with
renting. Of course, buying your own home is a big long-term
investment and that's why we spend a lot of time going through
personal finances with every customer and making sure they only buy
what they can afford.
"So if you've been thinking about shared ownership or
have just heard about it we encourage you to give us a call on
0845 60 10 878 or register your
interest online and we'll explain how it works and how it could
make your property dream come true − just as it has for more
than 200 Bromford customers this
* In the case of Coventry's Holmwood or Larks
Rise (pictured above), £54,000 would buy a typical 45% share of
a two-bed home with an open market value of £120,000. A minimum 5%
deposit on that share would be just £2,700.
** £55,125 would buy a typical 45% share of a two-bed house with
an open market value of £122,500 at Colliers Green, near
Nuneaton. A minimum 5% deposit would be just £2,757.
24 March 2014