'Generation renters' could save by buying that dream home
West home seekers adrift in the so called ‘Generation Rent’ trap could save more than £600 a month by buying rather than renting their home according to figures released by Crest Nicholson.
Susan Young, sales and marketing director at Crest Nicholson, said a spot check comparison of rental and mortgage repayment charges at Bristol’s prestigious Harbourside development revealed that buyers could save a small fortune by buying their property.
She said: “Some reports have claimed house buying in Britain will tail off and that renting will become the norm as it is in France and Germany.
“But our figures suggest this continental drift theory is a little premature and that home buyers remain committed to owning their own home – if they are given the chance to do so.”
Susan’s comments follow a survey from the Halifax building society headlined ‘Generation Rent’, which interviewed 8,000 20- to 45-year-olds and found that two-thirds of non-homeowners believed they had no prospect whatsoever of buying a home. Nine out of 10 said it was hard for first-time buyers to get a mortgage, with 60 per cent claiming it was "virtually impossible".
Separate figures from the Bank of England highlighted the difficulties faced by young adults, showing mortgage approvals had fallen back to a four-month low of 45,166 in April and are now running at just half the 90,000 average since 1993.
But Crest Nicholson is challenging the survey’s conclusion arguing that its figures suggest people would be better off owning their own property rather than renting.
She said: “Provided you can put down a 25 per cent deposit, a typical two-bedroom apartment at the Harbourside development purchased at £249,500 would mean average mortgage repayments of £358 a month*.
“But based on average rental values provided by the Bristol Lettings Company, renting a comparable property in the same up-market area of the city could cost up to £975 in rent per month.
“All people are doing paying rental figures like this is lining their landlords’ pockets. They should be investing in their future rather than waving goodbye to a potential saving of more than £600 per month.”
And with the added incentive of £10,000 off the asking price for those who reserve in August** will be an added boost to anyone looking to get on the first rung of the property ladder.
Properties at Harbourside are ideal for those wanting to get on the property ladder as well as a host of other enduring features which sets it apart from other development in the city such as spectacular views, a good sense of space and a high quality finish.
Prices currently start from £249,950 for a two-bedroom apartment with three-bedroom apartments starting at £475,000.
For further information visit harbourside.co.uk. The marketing suite on Cathedral Walk is open daily from 10 am to 5pm.
* based on 25% deposit with an interest only mortgage at 2.29%, subject to status.
** subject to availability and on selected plots. Terms and conditions apply.
