Publication Date: 16-09-2022 09:00
Tenants can avoid rising rents by using Help to Buy
Using the Help to Buy scheme to get on the property ladder could be the best way for tenants in the East Midlands to avoid large rent increases, according to a housebuilder in the region.
Ashberry Homes, which is building at developments in Derbyshire, Nottinghamshire, Leicestershire and Lincolnshire, says that buying with the scheme could be more cost-effective for many people than continuing to rent.
Average monthly rents in the East Midlands have increased by 10.3 per cent to £982 over the past 12 months, according to figures from Rightmove. The nationwide rise of 11.8 per cent was the fastest annual increase in 16 years, prompting calls from lobby group Generation Rent for the Government to introduce a rent freeze.
Tenants worried about soaring rents at a time when the cost of energy and other goods are also increasing rapidly could ease the financial pressure on themselves by securing their own home with Help to Buy, says Ashberry Homes Sales Director Steve Smith.
However, they will need to act fast in order to take advantage of the scheme as it closes to new applications on 31 October.
Steve said: “We are being faced with the perfect storm of costs going up in every area of life and rent is one of them. It is all putting enormous pressure on people’s budgets that in many cases is simply unsustainable.
“With rents skyrocketing alongside soaring energy costs, buying a new-build home is a cost-effective choice, especially with the Help to Buy scheme. That’s even before you consider the fact that renting is only putting money into someone else’s pocket, whereas paying for a mortgage on a home is an investment in your own future.”
With Help to Buy, first-time buyers can purchase a new-build home with just a five per cent deposit and a 75 per cent mortgage. The other 20 per cent of the purchase price is provided as a loan that is interest free for the first five years. The scheme is available on new-build homes priced up to £261,900 in the East Midlands.
Steve added: “Help to Buy is a fantastic scheme that makes it possible for first-time buyers who might not have thought homeownership was possible to get on the housing ladder. For some people it may be that buying works out cheaper than renting, particularly with rents increasing as much as they are at the moment.
“New-build homes are also more energy efficient than older properties, so buying a new place could also help people to reduce their heating bills. Applications for Help to Buy must be in by the end of October, so anyone who might benefit from using the scheme should start looking into it now.”
Ashberry Homes has properties at several developments across the East Midlands which are available with Help to Buy.
These include Amber Rise in Ripley, Derbyshire; Bourne Springs, near Bourne in Lincolnshire; and Cherry Meadow, in Hatton, Derbyshire.
For more information about Help to Buy and homes available with the scheme, visit ashberryhomes.co.uk.
