Debut coming to the rescue of Key Workers

With the latest research declaring that key workers are unable to afford to buy a home in 70% of towns across Great Britain, the shortage of affordable homes for this important group of buyers is now more in the spotlight than ever.

The annual Halifax Key Worker Housing Review has revealed that five groups of public sector workers – nurses, police officers, paramedics, fire fighters and teachers - are being priced out of the housing market at an alarming rate.

For these key workers, getting on the property ladder is an uphill struggle, with nurses and fire fighters having the greatest affordability problems. Nurses can now not afford the average house price in 99% towns across Great Britain, whereas five years ago the average house price was unaffordable for this group in just 55% of towns.

The research also showed that those living in London and the South West are the worst hit, with all 32 London boroughs and 34 towns surveyed in the South West being out of the price reach of all key worker groups.

This comes as the latest Office for National Statistics Social Trends report shows young adults are unable to fly the nest due to escalating property prices, with around six in 10 men and four in 10 women between the ages of 20 – 24 still living at home with their parents. At the same time, first time buyers in the UK faced a 204 per cent rise in the average house price since 1995, while the average income only increased by 92 per cent in the same period, according to the report.

It comes as no surprise then that starter homes are in high demand. And one house builder who is way ahead of the rest in providing low cost homes for all home buyers struggling to get on the ladder is Redrow.

The award winning property developer has been building its Debut range – where prices start from under £60,000 in some areas - for two years now, and has already helped almost 1,000 cash-strapped buyers, including a large proportion of key workers, own their own home at developments all over the UK.

Simon Bennett, group marketing director for Redrow, says: “The affordability issue facing young would-be buyers, especially key workers, is not going to go away. The fact that 70% of towns across Great Britain are now unaffordable for those working in careers essential to the day-to-day running of our society is unacceptable, and this is why we are continuing to push forward with Debut.

“Many of our buyers are from the key worker sectors and would have found it almost impossible to get on the property ladder without Debut. When we launch a new Debut development, we often have people queuing through the night to secure one of the properties - which can sell out in a matter of hours – and this speaks volumes about the crisis facing first time buyers today.”

One of the first Debut customers at Rugby in Warwickshire was fire-fighter Dan Vale, who had been living at home with his parents whilst struggling to save a sufficient deposit to get onto the property ladder. Dan, now 24, comments: “As a single key worker, with one income, I just wouldn’t have been able to afford a brand new property of my own without Debut.

“I think the Debut scheme is a really good thing for key workers, and all first time buyers, because the homes are a great buy, and it gives people an opportunity to get on the property ladder who might not have been able to otherwise. And it’s so nice to be able to go back to my own place after a hard day at work.”

The innovative Debut range is currently being sold at a variety of locations across the UK, with further schemes planned for the coming year. Depending on the location prices have ranged from around £60,000 for a one-bedroom apartment, going up to circa £120,000 for the largest two-bedroom home - some with extra workspace. Crucially, all Debut homes to date have come in under the current stamp-duty threshold of £125,000.

And a further leg-up for buyers comes in the form of Redrow’s Easi-buy assistance. Debut purchasers can choose to defer 10% of the initial purchase price for up to 10 years, and this interest free fixed sum can be paid back at any time within that period, via occasional lump sums, monthly instalments or in full.

Simon adds: “As well as the affordability factor, Debut homes are also built to target an ECO rating of ‘Excellent’, making them potentially among the most environmentally friendly homes in the country. And with one monthly service charge to cover the cost of water, electricity, gas, building insurance and all external maintenance and window cleaning, we can also make it easier for those with low or modest wages to budget for their household expenditure.”

Debut homes are also guaranteed to go to those who need them most, as only owner-occupiers are eligible to buy and Redrow has a legal framework to stop the properties being snapped up by buy-to-let investors.

Debut homes are currently available or coming soon in and around the following areas: Chorley, Selby, Lincoln, Birmingham, Derby, Burton-upon-Trent, Stoke-on-Trent, Bridgend and Merthyr Tydfil. There are also schemes planned in Bristol and Ebbw Vale.

For more information about Redrow’s Debut homes, please visit Debutbyredrow.co.uk.