LoginSubscribe to Alerts

Five Reasons To Get On The Property Ladder

Posted 17 June 2022 by Keith Osborne

Anne-Marie O’Doherty of Lovell shares five key points which make a first home purchase possible and practical...

Looking to offer some insight and practical tips, regional sales director at Lovell Homes, Anne-Marie O’Doherty, shares five key reasons that could make it possible – and practical – to make a move.

As house prices soar and first-time buyer spends continue to increase, stepping onto the property ladder has felt more and more out of reach for the UK’s young adults. So much so, that a YouGov survey conducted by Lovell showed the majority of 18 to 34-year-olds said they didn’t expect to buy a property for up to five or even ten years.

It is understandable why purchasers, particularly in the younger age bracket, may feel daunted by the prospect of buying a property. Experts put the ongoing price hikes down to both buyers and sellers nervous of missing out, as properties sell faster than ever before. This situation means that it is worth being educated in the process along with the support available, to make a smooth and successful purchase as soon as possible.

These five considerations may help you think again about achieving your own home a bit sooner and understanding how to get the most out of your spend – rather than letting a decade go by.

1. Regional variety

If you are keen to take the next step, broadening your scope of where to purchase may reveal some surprising options.

We are continuing to see the popularity of the North West, not least because it is home to the third largest city in England. While living in Manchester city centre may be a stretch for a first-time buyer, Greater Manchester and its surrounding counties are well connected, offering lively, urban living.

Lovell Homes is showcasing how this variety of living is possible by offering a choice of developments in different locations. The Gateway is our central location whereas Spinners Quarter in the cultured Salford might be more to your taste. The upcoming launch of Eden Park in Middleton is also an exciting addition, well-known for its heritage and rural feel, while still having access to Manchester.

Cara SimmCara Simm

Manchester resident Cara Simm offered her insight to Lovell Homes on renting in the city and her thoughts on purchasing there in the future.

Project manager Cara, 24, said: “There’s a bit of everything in Manchester – nightlife, shops, a great culture. London almost seems like a step down in comparison! But having rented here for a long time, I now know it’s not somewhere I want to live permanently. I’d like to have more access to green space.

“There is a great sense of community in many of the areas around Manchester, especially if you like the idea of a local high street and perhaps a regular market. I couldn’t imagine leaving the north of England, and Greater Manchester is an excellent choice within the region.”

2. A place for the future

Choosing to buy a house, in an area that can evolve alongside your life can be a great way to save time and money by ensuring you don’t need to move again in just a few years.

Consider a location that will allow you to put roots down for longer. Our survey showed 79% of all participants currently live in urban areas, but when asked to choose which factors were most important to them when choosing where to live, after house price (62%), amenities (57%) and access to green spaces (54%) were the principal factors. Lovell Homes’ developments aim to choose areas that combine the best of both worlds. Not having to sacrifice the benefits of city or urban living to have more space and be closer to nature.

Even in the heart of a city location, Lovell Homes has built houses that still offer gardens and terraces such as The Gateway development.

We also have sites in Cheshire, Lancashire and the Fylde Coast that are proving extremely popular. These areas combine great job opportunities, shopping and nightlife, while also being family friendly and offering plenty of open spaces. Opting for a house purchase, particularly now, could also be a worthwhile investment for the future as your priorities change.

3. Make an investment

It can be hard for first-time buyers to consider purchasing, if a chunk of your income is reserved to pay your landlord. But shifting your thinking, getting educated on finances and formulating a plan could be the key to moving on from renting and into investment.

This year, private rent in the UK underwent its largest annual growth rate since February 2017. Our survey showed a quarter of 18- to 24-year-olds and nearly a third of 25- to 34-year-olds are paying rent to a private landlord. Within these same age groups, 50% and 45% (respectively) said they’d be looking to buy a property in the next five to 10 years.

The latest median monthly rent, per person, is £755 for England – the highest ever recorded. Without increasing, this would amount to £45,300 over five years. If you were to wait another five years, that’s nearly £100,000 spent on a home that doesn’t belong to you.

homes and moneyFor comparison, a deposit of 10% on a £200,000 (£20,000) house would lead to a monthly cost of between £500 and £760 (based on a 2% mortgage rate) – depending on the term. This could also be split between partners, friends or family members and the big difference is your money becomes an investment.

Saving a deposit and going through the application process is still a challenge, of course, but it’s important to see the long-term benefits. It’s a good idea to get educated on this – doing your own research, looking at your finances, and having something to work towards can really help get you started.

4. New build perks

New build homes are a great way to get on to the housing ladder and offer a host of benefits. With 62% of all participants (69.5% for 18- to 24-year-olds) in our survey stating house price was their top priority when choosing where to live, it shows affordability was a major factor. So, after purchasing, the last thing you want is more costs and hefty bills.

A Lovell home offers a ten-year NHBC Buildmark policy which includes deposit protection from exchange of contracts, a two-year builder warranty from legal completion, and then eight years of structural defects insurance cover and is committed to achieving B or C energy efficiency certificates across its developments, which can help to bring down those monthly outgoings.

According to a recent report by the Home Builders Federation (HBF), owners of new build homes save £112 million and cut UK carbon emissions by over 500,000 tonnes per year. This amounts to roughly £435 per household, and for new buyers these savings will be higher. There are also interiors packages too, so you can save money ahead of time and design your home to your liking so that it’s ready for when you move in.

Cara, who had planned on purchasing a new build before the pandemic, said: “I think especially as I was planning – and still am planning – to purchase on my own, I wanted to minimise the need for renovations or repairs. I especially wanted the bathroom and kitchen to be brand new, so I wouldn’t need to splurge more money on replacing them. I think new builds have great appeal for this reason, particularly with younger buyers who may not want the hassle of fixing up their home.”

Choosing a new build means you have a supportive sales team on hand that can put you in touch with a financial advisor and guide you through the process. Even if you plan on purchasing in five years, I’d encourage you to have those conversations now to get you on the right path. We are seeing people miss out on plots because they think they have time to wait, but really, getting these processes under way will ensure you keep to a proposed timeline.

If you are interested in a property, you should consider registering sooner rather than later. Doing this will put you in a strong position to make a decision or to put in an offer at this appointment and get the qualification process moving. This is all crucial due to a lack of availability in the current market.

Help5. Help and support

Finally, the level of help currently available for first-time buyers is worth taking advantage of. Again, making time to forward plan and have conversations about these schemes in a timely manner is important. Speaking with your chosen financial advisor will also give you a clearer picture of what your mortgage may look like and therefore a better chance at securing the plot you want.

Support you may want to consider includes the Help to Buy (HTB) scheme offered by the government. It only applies to first-time buyers purchasing a new build property and is planned to run until March 2023, with no current plans for its extension. Price caps vary by region, and Lovell Homes has homes across the country. But be aware that new builds available within the timeframe are selling fast, so there really is no time to waste.

In addition, there is also the Lifetime ISA (LISA) which can help to stretch savings a little further. LISA accounts allow you to save up to £4,000 every tax year towards a first home or your retirement, with the government adding a 25% bonus on top of what you save.

That means you can get a top up of as much as £1,000 each year, tax-free and without any cost – it’s a no-brainer and can help to keep you focused on your goals. To qualify for a LISA, you must be aged between 18 and 39.

Purchasing your first home is always going to be a big moment, and certainly with the current climate, it can sometimes seem out of reach. But by breaking down your options, being flexible and discussing with advisors, you may find it is closer than you think.

 

Featured Developments
Ancoats, Greater Manchester M4 6
£444,950 - £514,950
The Gateway
Ancoats, Greater Manchester M4 6
3 - 4 bedroom properties
Lovell Homes
Salford, Greater Manchester M5 4
Price on application
Spinners Quarter
Salford, Greater Manchester M5 4
Contact for more details
Lovell Homes
Middleton, Greater Manchester M24
Price on application
Eden Park
Middleton, Greater Manchester M24 
Contact for more details
Lovell Homes
Save time and contact all housebuilders at once
Select the developments you're interested in and we will do the rest.
  • The Gateway
  • Spinners Quarter
  • Eden Park
By clicking "Request Details" I accept the Terms and Conditions and Privacy Policy and I am happy to receive more information about the above or other developments similar from WhatHouse? Digital or these developers. I understand that consent isn't a condition of purchase for any product or service and that I can opt out at any time.
The housebuilder will use these details to contact you about this property/development to arrange a viewing or provide you with more information.
SO Resi Farnham
11 August 2022
SO Resi Farnham is a collection of 72 brand new apartments available on the Shared Ownership scheme...Read more
Hawkins Court (Connells/ACCA Group/OEH Group)
11 August 2022
89 new one- and two-bedroom apartments are being created from an iconic factory in Northampton's town centre...Read more
Newbury Racecourse (David Wilson Homes)
11 August 2022
David Wilson Homes is hosting an event at Newbury Racecourse where buyers could save thousands of pounds...Read more
Laura and James at The Sycamores
12 July 2022
Laura and James are 'early bird' buyers of a brand new home at Lovell's The Sycamores in Kirk Ella...Read more
13 June 2022
Joint-venture developer Lovell Together has launched three new show homes at Spinners Quarter...Read more
Drummond Park (Lovell Homes)
4 May 2022
Lovell Homes has seen great success at the off-plan launch of its new Drummond Park development...Read more
Sign up for email alertsGet the latest properties and updates sent directly to your inbox daily, weekly or immediately you are in control.
Subscribe to Alerts
A Guide To Part Buy Part Rent
With Home Reach you buy a share of your chosen newly built home and pay a monthly rent on the part you don’t buy. Your budget will decide the size of the share you buy, rather than the size of your home. So, you might decide to buy a bigger share of a lower priced home or a smaller share of a more expensive home.

Click here to see your activities