Buying a home in any city centre these days isn’t easy. With a third of millenials predicted to still be renting in their 40s the housing market may seem a little bleak for the young professionals grafting their way into the city centre areas amid costly tenancy fees and monumental house prices. In the 1970s young people could buy their home in their twenties, fresh from living with parents, without too much of an issue, but with credit scores, the financial crisis and an entirely new economic climate to adapt to this is simply no longer the way. The government have thankfully now supported a new scheme that is set to help first-time buyers onto the housing ladder without too much of the hassle.
Manchester’s housing market
With the average rent costing £775 a month in the Manchester area, an eye watering 30% increase in the last 4 years, finding somewhere that your wage manages to cover is certainly predicted to be a struggle. Those of us with families have been hardest hit with a four bedroom home in Trafford costing a whopping £1500 a month and even a room in a shared house costs an average of £433 in the centre of Manchester. So whether you’re a single person, a young family or a couple looking to find their own place, rental costs are against you when it comes to saving for the future. And with house prices rising 1.83% in the last year alone, to an average of £169,300 putting a deposit down is also something that may take decades.
What is Shared Ownership?
This housing scheme has been around for years but has been government backed recently in the wake of the housing crisis. With the mayor of London promoting this through his Homes For Londoners programme, shared ownership has already made waves in central city areas. The scheme is designed to help first-time buyers find their footing on the property market and avoid costs that have changed the way we’ve thought about buying a home. Shared Ownership doesn’t involve living with anyone you don’t know, instead you buy a share in your home and rent the rest spreading the cost and paying less than rent alone in the area.
You are essentially part buy, part rent your home and paying a deposit on just the portion you’ve bought. So being able to buy between 25%-75% to begin with could make your initial costs very feasible with just a 10% deposit on a small value of the total cost of the home. The mortgage will be easier to apply for too with less of a heft loan to ask for. Shared ownership is proving popular amongst young people especially as the homes are all new developments in sought-after areas fully completed with high spec finishes and contemporary design.
How it could help you
While you save on the deposit and gain control of your finances, there’s also the option to staircase where you basically buy more shares and really invest in your home. You can buy more before you sell meaning you will also receive a bigger share of the equity if your home has gone up in value. The scheme works well for many people for the easy payments, avoidance of high deposits and moving away from renting.
If this is something you think would fit you situation and hopes for the future you can check out shared ownership in Manchester at property booking and learn a little more about the new way to buy a home in the city we all love.