If you haven’t already heard there is a housing crisis in full swing out there and it spells trouble for a whole load of first time buyers. With half of us predicted to still be renting in our forties and 1 in 3 by the time we are claiming pensions it doesn’t look too good for us millennials. And while we like to blame the boomers for their early retirements or generation X’s overspending, it’s time we start looking for solutions instead of problems. There are in fact several ways you can get onto the property ladder without it feeling like you’re at the foot of Everest.
Help to buy
This new government scheme aims to get first time buyers and less well-off families on the property ladder without the heart wrenching deposits and the mortifying mortgages.
This scheme will provide you with a 20% equity loan from the government that has zero interest in the first 5 years so it’s a nice way to ease into your ownership without being bombarded with big bills.
You will also only have to pay a 5% deposit so your mortgage will only equal to 75% of the value of the house. It’s a far easier way to get hold of your first dream home without having to spend another 10 years living with your mum saving up £20,000.
With the reduced deposit, smaller mortgage and no interest equity loan the scheme provides a less than stressful way of settling down somewhere to your taste with a little help from the government.
This is a great way to own your first home if you’re looking for an affordable modern house in an area that will suit you.
This government scheme allows you to buy up to 75% of the property and rent the rest from non-profit housing associations. Not only will you benefit from a reduced deposit but also far more affordable rent costs as housing associations always have your best interests in mind and charge significantly less than private landlords.
In addition, this program allows you to buy more of your home when you feel you can, giving you time and control to make the best decisions for you and your family.
You will only have to pay a deposit on the amount you wish to buy so for 50% of a £20,000 home the deposit will cost just £10,000 making many more homes far more accessible to a more modest wage.
All these homes are newly built and many are in up and coming areas such as Ebbsfleet giving you plenty of choice when it comes to setting down your roots.
Homes for Londoners
While you may think the only London homes in your price range are Harry Potter style shoe cupboards under the stairs you would be wrong.
With Sadiq Khan’s new pledge to create genuinely affordable homes for people who live and work in our capital, times are changing from the untouchable wasteland of one-bedroom apartments that amount to the same cost as a palace in Burnley, to affordable family homes nearer to work and nicer to your bank account. With schemes such as ‘first dibs’ ensuring Londoners have access to new homes first in the area and help to buy that provide 40% equity loans instead of 20% giving you a mortgage of just 55%, London homes are no longer not just for people with yachts and moustaches.
You can also get shared ownership in London in plenty of areas near schools, transport links and open spaces.
So, while you thought your dreams of browsing Ikea for your first dining table and ordering your first washing machine were dead, there are in fact solutions out there that will fit your budget, taste and needs. Whether you’re sick of your commute into the capital and want to move a little further in, you’re looking for a quiet suburban area to bring up the kids or you just feel it’s time to fly the nest and stop arguing with your entire family about who ate the last mac n cheese out the freezer, there is a housing scheme that will get you on the property ladder without a life time of savings in your account or a finding out you’re great grandfather was secretly the 108th king of Genovia.