Crayford offers stunning value to first time buyers
New research from Fairview New Homes has revealed that not only is it cheaper to buy a new one bedroom apartment in Crayford than it is to rent a similar property but relative to income, it is as cheap to buy now as it has been for 15 years.
Fairview’s research shows that one-bedroom apartments in its Equinox development in Crayford, are commanding rents of between £725 and £750 per month. For those able to raise a deposit of 20%, a similar brand new home can be bought with a monthly mortgage commitment of just £521.
Rents in Crayford have continued to rise along with the wider national trend. Figures last month from estate agent group, LSL, showed national rents to have risen by 2.9% in the last year with rents in the South East rising even faster.
The average rent paid by private tenants in England and Wales reached a new record high in July, of £725 a month, whilst the average rent in London is now some £1057.
Whilst renting is becoming an increasingly expensive option, buying a new home is as cheap, relative to income, as it has been for many years. Research from Halifax last month revealed that mortgage payments for new borrowers, relative to earnings, are at their lowest level since 1997 with typical payments for new loans representing just over a quarter (26 per cent) of take-home pay.
In London specifically, where house prices have remained relatively strong due to overseas buyer demand, potential payments for new borrowers dropped from 56 per cent of earnings five years ago to around 35 per cent now according to the study.
For homebuyers whom finding a larger deposit is increasingly difficult, apartments at Equinox are available through the government’s mortgage guarantee scheme, NewBuy. NewBuy is designed to help overcome the deposit gap faced by many new homebuyers. It is aimed at both first-time buyers and those who already own a home, who only have funds for a 5-10% deposit. For buyers meeting their qualifying criteria, the lenders participating in the scheme will provide a 90-95% loan-to-value mortgage, which is guaranteed by the government. Equinox is one of the very first developments in the country to offer NewBuy funding through a “challenger” bank. Aldermore was set up following the banking crisis to offer an alternative to the large clearing banks and building societies and offers mortgages at Equinox of up to 95% LTV at an APR of 5.48%. Repayments for the one bedroom apartment in this case would be £736 per month, on a par with renting but having mounted the first rung of the housing ladder without having to save for years and years.
The one-bedroom apartments at Equinox are available from just £124,995, which through the NewBuy scheme, will mean that buyers will only need to find £6,250 for their deposit.
At £124,995 the apartments at Equinox are available at a price per square foot of £269, which according to comparative research from Jones Lang La Salle is less the half the average price per square foot that you would have to pay for a home in South East London (the boroughs of Southwark, Greenwich, Elephant and Castle, Blackheath). Commuters living in Crayford can still be in London Bridge in just 30 minutes and Charing Cross in approximately 38 minutes.
In addition to the one bedroom apartments the final few studios at Equinox are available from just £89,995 and two bedroom apartments from £169,995. Further details about Equinox and the NewBuy mortgage guarantee scheme can be found at fairview.co.uk.
