In recent years, high inflation in the UK and the subsequent cost of living crisis has seen soaring mortgage payments and pushed the price of renting higher and higher. Affordable housing has become harder to find, and many people across the country are struggling to find the right property for themselves and their loved ones. You may be considering upsizing to a larger home due to a growing need for more space but might be struggling with the idea of a larger initial deposit or need to remain on a similar monthly budget, so how do you get more house for your money?
Shared Ownership Schemes
We think there is no better time to consider a shared ownership scheme than right now! Many people wonder why shared ownership can be more affordable than traditional home buying. The answer lies in shared responsibility and expenses, as well as the reduced barrier to entry. By buying a share of a property, rather than the full amount, you can find a whole new selection of affordable houses on the market.
So, what is shared ownership?
The scheme allows you to part buy, part rent your home with a low initial deposit. Based upon your affordability, you can buy an initial share of your home between 25% and 75% and then make a small monthly rent payment for the remaining share.
How can it help me get a larger, more affordable house?
This could be an invaluable option when looking for a larger house. After the initial lower deposit, shared ownership offers the benefit of needing a smaller total mortgage value. This means your initial outlays are more manageable, and the ongoing monthly mortgage payments are significantly lower than they would be for the full property value. Not only that shared ownership properties often offer rent below the market rate for the landlord’s portion of the home.
Unlike the typical rental market where rates can increase unpredictably, this strategic capping of rent keeps your monthly payments predictable and affordable. It works hand in hand with the scheme’s lower mortgage payments and reasonable service charges to provide a more affordable route into homeownership. Not only can you budget more effectively each month you could be paying a similar monthly amount but for a larger house.
With shared ownership you can get a foot on the housing ladder without the need to save for a huge deposit, the option to buy the remainder of the property at a later date, giving you a chance to navigate the mortgage/rental increases and budget accordingly and ultimately initially lower monthly rent costs. Many of the shared ownership purchasers have stated that they are now paying out the same or less a month to own a share of their property compared to when privately renting.
Eco Friendly Living
Another idea that works hand in hand with the shared ownership scheme is to keep the monthly running costs down. By investing now and paying slightly more upfront for an eco-friendly and more sustainable house you could be saving each month by having smaller running costs. Keeping bills low is imperative for homeowners across the UK, with energy prices set to rise again you may be concerned about your energy usage, you might decide its more beneficial to pay more outright to secure an eco-home as it can have a more positive long-term impact on your bills making a larger house more affordable in the long-term.
Zero-carbon homes are designed to produce as much energy as they consume over a year, achieving net-zero energy consumption. These homes often use solar panels, high-efficiency insulation, and other renewable technologies to maintain energy balance. The result is a home that not only reduces environmental impact but also significantly cuts down on energy bills.
Simple, practical changes in different areas of the house lead to significant financial benefits. Upgrading key home elements enhances sustainability and long-term cost savings. An excellent investment is installing energy-efficient windows and insulation to protect the inside air from the outside elements, reducing the need for excessive air conditioning. Another smart investment is high-efficiency appliances. Although they require an initial financial commitment, the long-term benefits outweigh the costs. Refrigerators, water heaters, boiler systems with advanced energy-saving features significantly lower utility bills over time.
Monitor and Maintain
Sustainability efforts require ongoing attention. Regular home maintenance for plumbing, and electrical systems ensures efficiency and prevents costly problems. Clean air filters, leak-free plumbing, and intact insulation contribute to lower energy consumption. Furthermore, smart home technology offers innovative ways to track and optimize energy use. Devices like smart thermostats, energy monitors, and automated lighting systems provide real-time insights, allowing homeowners to adjust usage as needed. These tools help sustain cost savings and reduce environmental impact.
Solar Power – Ultimate Energy Source for lower running costs
Solar energy has been available for decades now, and it remains one of the most effective ways to cut household energy costs and minimize environmental impact. Solar panels convert sunlight into usable energy, providing power from an entirely clean and renewable resource. Solar panels not only save you money, but they can also earn you cash, all while helping to reduce the planet’s carbon footprint. Solar energy is only growing more effective every year. Harnessing solar power increases energy independence and lowers electricity bills.
Shared Ownership stands out as an accessible and financially manageable choice for many people when looking for a more affordable option to achieve that ambition of a larger home.
Get in touch with our friendly team for more information on our Shared Ownership Scheme and see what stunning properties we have available.