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Renting to buying - Tim Betts, Taylor Wimpey

Renters: becoming a homeowner could be easier than you think

In the news recently it’s been claimed that the popularity of the rental market is growing in Britain, with more and more people choosing to turn their backs on the prospect of investing in a home of their own.

Apparently, an increasing number of would-be first-time buyers are being dissuaded from stepping on the property ladder by rising house prices, lack of mortgage availability and the continuing uncertainty surrounding the economy.

There’s no doubt that renting can seem a comfortable option in the short-term, but it offers nothing that comes close to outweighing the benefits of home ownership, with bricks and mortar still one of the safest, and potentially most profitable, ways to invest in your future.

And the truth is that many of the people who would love to become homebuyers are actually in position to do just that, even though they might assume they can’t afford it. So let’s look at some key concerns that renters might have about buying and see if we can’t dispel a few myths while we’re at it.

I’d love to be able to buy, but there’s no way I’d be able to get a mortgage without a huge deposit
This time last year, admittedly, it was tough for first-time buyers unless they had a large chunk of equity saved or benevolent relatives to help them with their deposit.

But things are different today. Just a few weeks ago, Santander announced it was making 90% mortgages available to those purchasing new-build properties, and many housebuilders offer additional incentives to make home ownership even easier.

Under Taylor Wimpey’s Deposit Match scheme, for example, purchasers who can raise a 5% down-payment on selected properties at developments throughout the country will have their contribution doubled by the leading housebuilder.

For a house costing £165,000 – the average property price in England and Wales according to the latest Land Registry House Price Index – a purchaser taking advantage of a Santander mortgage and Deposit Match only needs to raise £8,250, compared to an intimidating £33,000 without the support of the developer.

What’s more, there are plenty of other great schemes available to make homebuying accessible to all, including Taylor Wimpey’s Easy Start shared equity scheme, which means selected properties can be purchased with a 5% deposit and an 80% mortgage, as well as Government-backed HomeBuy schemes.

I can’t afford to buy – mortgage repayments will be much more expensive than my monthly rent
This is another common misconception, but monthly mortgage repayments are often comparable, if not cheaper than the cost of renting.

Many Taylor Wimpey developments are located on the edges of towns and cities where prices can be kept lower than those in the cramped centres. By choosing a brand new home at an out-of-town development, buyers can frequently enjoy a lower cost of living while still benefiting from a superb location with great commuter links and everyday amenities close at hand.

Independent mortgage advice is available from a Taylor Wimpey development near you.

If something goes wrong with my rented property, the landlord will sort it out – and it won’t cost me anything
This is true, but anyone who’s ever been forced to wait ages to get a boiler repaired or a leak fixed in their rented accommodation will know that there’s sometimes a world of difference between the theory and the reality.

Purchasing a property doesn’t have to mean spending big sums on DIY and repairs. All brand new Taylor Wimpey properties are designed to be maintenance-free and come with a two-year guarantee from the housebuilder in addition to a 10-year warranty from the National House-Building Council (NHBC).

Property prices keep on rising, how is that a good thing for me?
As a first-time buyer, it may be difficult to see the benefits of the continuing improvement in the property market – and there’s no denying that the more expensive the home, the more you’ll have to pay.

But although national house prices have risen almost every month since last summer, the cost of a typical home remains attractive when compared to the pre-recession peak of the homes market.
In fact, according to the Land Registry, the average home in January 2010 was more than 10% cheaper than two years earlier – so now is still a perfect opportunity to exploit today’s relatively low prices.

And the fact that the market has carried on growing in the face of such difficult economic times demonstrates just how resilient property remains as an investment – the perfect illustration of why buying a home will always be preferable to renting.

Tim Betts

Tim Betts is Sales and Marketing Director for Taylor Wimpey West London, which has new homes developments in Berkshire, Buckinghamshire, Hampshire, Middlesex and Surrey. For further information, call Taylor Wimpey West London on 01256 745203 or visit www.taylorwimpey.co.uk

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