Posted on 08th April, 2021

First-Time Buyers Enjoy Lower Costs

By Laura O'Sullivan

First-time buyers are now £824 better off a month than renters

New data from Halifax reports that first-time buyers are now saving more than £800 a year compared to renters, based on average housing costs on a three-bedroom home. An increase of 8% in the past 12 months.

The data shows that the average monthly rental costs increased by 10% to £821 in the last year. However, monthly buying costs increased by just 1% to £753.

Andrew Asaam, mortgages director at Halifax, said: “Lockdown restrictions may have held back renters planning to buy a property during the past year with its practical challenges, and while the stamp duty holiday race has helped drive record levels of mortgage approvals, the cost of renting has crept up in the same period.

“Although the biggest savings to be made – of around £5,000 a year – are unsurprisingly in the capital, homeowners in the South East, East Anglia and Scotland are also making the biggest savings a year, around £2,000 on average compared to their neighbours who are renting.

“Raising a deposit is still the biggest challenge for those looking to get on to the property ladder, but the average first home deposit has gone up by another £11,000 since the start of the pandemic.

“We know that first-time buyers will benefit from steps that make finding a deposit more of a reality and the new Help to Buy Mortgage Guarantee scheme could be a gamechanger for those saving hard to take the first step and often paying rent at the same time. We have also committed to lending £10bn in 2021 to help people buy their first home this year.”

Wavensmere Homes

If you are looking to move within the Derby area, we have a range of housing options at Nightingale Quarter, including Help-to-Buy. Contact us here.

The development is nearing Phase One competition, which is sold out.

Nightingale Quarter is a unique development that involves the restoration of two Victorian pepper pot buildings. See here for more information.

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