When a housing problem shared is a problem halved

Recent news about the housing market tends to make desperate reading for would-be first time buyers, who are having to turn to more creative means to make it onto the property ladder. Developer Redrow Homes is among those reporting an increasing trend to ‘buy with a buddy’ simply as a means of getting onto that first rung.

Simon Bennett, Redrow’s marketing director, says: “We are seeing more and more examples of friends and siblings joining forces to enable them to buy their first home. Just as young people have been used to renting shared properties for a long time, now it seems they’re willing to buy together too.

“It makes sense on a lot of fronts – each party has less of a deposit to find, the responsibility of the mortgage and household bills is shared each month, and each owner is investing in their future and hopefully building up some equity, rather than paying out rent.”

Redrow is taking steps to make it as easy as possible for people to buy jointly by making sure the financial advisors and solicitors it works with are all armed with the very latest information to help this type of buyer. It has even agreed special rates for Redrow home buyers with one of Britain’s leading lenders, the Halifax, who will accept mortgage applications from up to four applicants on the same property.

A new information leaflet, ‘Mortgaging with a mate’ is available at Redrow developments and provides useful information and advice on buying a home with friends. Special events and workshops have also been held around the country to promote the concept of buying with a buddy and more of these will follow.

Buying a brand new home can be a good option for joint purchasers as, with little or no maintenance to worry about, there’s less likely to be arguments over any jobs that need doing. Also with many new homes - even apartments - including at least one en-suite as well as the main bathroom, a new home can offer more privacy for friends who are sharing.

It’s little wonder that mortgaging with a mate is getting more popular when you consider some of the latest headlines. According to the Halifax annual first time buyers survey earlier this year, the average house is unaffordable for first time buyers in more than nine out of ten towns; and the number of first time buyers has fallen to its lowest annual total since 1980.

Very recently the Office of National Statistics announced that young people are staying at home longer because they can’t afford to fly the nest. In 2006, 58% of men and 39% of women aged 20-24 in England lived with their parents, significantly higher than in 1991.

And the Halifax Key Worker Housing Review has revealed that the average house price is unaffordable for all five key worker occupations (nurses, teachers, police officers, fire fighters and paramedics) in 70% of towns across Great Britain.

“Faced with statistics like these, a lot of people are having to find different ways to get onto the property ladder. Many turn to their parents or another relative for financial assistance or to act as mortgage guarantors, but for those who don’t have this option mortgaging with a mate could be the next best thing,” says Simon Bennett.

He adds: “There are now various mortgage products available from high street lenders allowing up to four people to take out a joint mortgage. The financial advisers we use can recommend an appropriate product to suit the buyers’ circumstances.

“It’s also important that co-owners protect themselves with things like a joint deed and a cohabitation agreement, which will cover issues like each owner’s share of the final property value and what will happen in the event of death or other changes in living arrangements. These are all things that the solicitors we work with regularly can advise upon.”

Whilst apartments, two-bedroom houses and Redrow’s dedicated first time buyer product, Debut, are understandably proving popular with joint owners, Simon points out that the new generation of three-storey new homes also has lots to offer cohabiters.

He explains: “The unconventional layout of many of our three-storey homes means that whole areas of a property can be virtually self-contained. For instance, a bedroom with en-suite on the second floor could provide total privacy for one occupant while his or her co-owner has their own ‘personal space’ on the middle level. We’ve even had a group of friends club together to buy a city centre penthouse in Birmingham so they can enjoy the high life at an affordable price!”

In Lancashire, Redrow currently has a choice of properties available at its Worden Court and Crescent Green developments at Buckshaw Village, Chorley, The Orchards in Leyland, and Hallwood Gardens, also in Chorley, with many being ideal for two or more friends sharing.

Worden Court is currently offering a wide range of spacious two bedroom apartments and three and four bedroom luxury homes forming part of their stunning Buckshaw Village development, near Chorley. The two-bedroom Argal style, with that all-important en-suite bathroom, is priced from £134,995 and the Ouse four-bedroom townhouse at £239,995 respectively. The latter’s three-storey layout with ‘rooms in the roof’ offers space and privacy for friends sharing.

Hallwood Gardens at Gillibrands Park, Chorley is beautifully set against a striking backdrop of scenic woodlands. The choices include the Amherst 8, a two-bedroom apartment priced at £122, 995 and the Roadford, a deluxe four bedroom detached home priced from £259,995 - all conveniently located one mile from Chorley town centre.

The Orchards, at Dunkirk Lane, Leyland, is a unique development of two, three and four-bedroom homes. Benefiting from easy access to the M6 and M61 motorways, it is an ideal base for commuters. Styles available include the Lambourne, a stylish three-bedroom mid terrace home priced from £194,995 and the Medlock, a spacious four-bedroom detached home priced at £237,995.

Crescent Green, off Dawsons Lane in Chorley, is Redrow’s latest phase of new homes at Buckshaw village. Boasting an impressive range of stylish one and two-bedroom apartments and stunning three-bedroom mews style homes, plus brand new and great for commuting, it has the perfect dwellings for friends looking to share.

For details of any of these developments and further homes available, visit Redrow.co.uk.