First-time home buyers in the UK are increasingly preferring new build homes in view of affordability through the Government’s ‘Help to Buy’ scheme combined with energy efficiency and cheaper running costs.
According to a report from Home Builders Federation (HBF), a new generation of first-time buyers are seeing new build homes, for which the ‘Help to Buy’ scheme is widely available, as the answer to their housing affordability problem. The scheme allows house-buyers to purchase a home with just a 5 per cent deposit along with reductions in their monthly outgoings.
Approximately, 16,000 new homes have now been purchased under the scheme; 81 per cent of them by first-time buyers, paying on average £235k for their homes (non-London based buyers). This deposit of under £12,000 for a brand-new home compares favourably with the average first-time buyer needing to find a 16 per cent deposit.
In addition, research shows that new build homes are much more energy efficient to run than second hand homes, saving buyers on average an additional £53 a month. These combined savings amount to almost £5,000 over the course of a year, significant savings for first-time buyers.
New homes also offer cheaper running costs for buyers. With brand-new bathrooms, kitchens and fixtures and fittings throughout, first-time buyers make considerable savings to their short and long-term budgets.
New build homes are proving to be the solution for hard-pressed households with an ambition to move into home ownership - HBF