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 – responsible for The Wharf apartments in Leighton Buzzard - 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 regularly 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!”

Popular apartment scheme The Wharf in Leighton Buzzard is the perfect destination for ‘wannabe’ home owners to buy together. The development showcases two-bedroom apartments, which - unlike many apartments on the market - are often as big as a conventional house, ranging up to 840 sq ft, complete with storage cupboards, fitted wardrobes and a balcony.

Apartments at The Wharf are perfectly kitted out for two friends to share. A typical apartment comes with two bedrooms, with built in wardrobe and an en-suite shower room to the master bedroom, as well as a main bathroom, meaning that each person would get their own bathroom – a huge attraction for those who like their own space. There’s also an open plan kitchen and living area, two storage cupboards and a single parking space. Current prices range from £169,995 to £219,995.

Leighton Buzzard is just a 35-minute train journey to London Euston making it an excellent commuter link for those who want to escape from the hustle and bustle of the capital after a hard day’s work. The bustling market town boasts many shops, a post office, a medical centre and beautiful historic buildings dating back to the Middle Ages.

The area provides fantastic transport links to nearby Dunstable and Milton Keynes, while the M1 and M40 are also within easy reach. Luton International Airport is just 12 miles away, accessible by bus and car, while Heathrow Airport is 40 miles away.

To find out more about buying with a buddy at The Wharf, or to view the fully furnished show homes, log on to Redrow.co.uk for details of this and other developments.