According to real estate expert Nick Millican, London is one of the most expensive cities in the world. Prices for properties have skyrocketed, and with the current state of inflation, high mortgage rates, and stagnating employee wages, it’s become challenging for prospective homeowners to buy their first home.
Hampton’s calculates that £142,870 is the average deposit for first-time homebuyers. For most workers, this amount is impossible to raise. The cost of living crises and high rents make it nearly impossible for an employee to save a deposit to buy a home. But, as Nick Millican recalls, first-time buyers should not be discouraged.
Nick Millican notes that there are programs that are established to help first-time home buyers purchase a home. Deposit Unlock is a program designed to help first-time buyers purchase a newly built home with only a 5% deposit. Currently, this is only available for a small portion of plots.
Fairview’s Save to Buy program lets buyers live at the newly built property while they save for a deposit with monthly fixed payments. The idea is for monthly payments to go toward a savings deposit. To qualify for the program first-time buyers need to be employed, have 1% of the deposit, and have a good credit score. And real estate expert Nick Millican will be there to guide them throughout the whole process.
The Homenow program is a rent-to-buy program. Buyers don’t need a deposit. Homenow will buy a property that the buyer likes and will act as the landlord, Nick Millican adds. The buyer pays rent, and after five years, the buyer is entitled to a portion of the equity and can use that as a deposit. Even is the name of a company that lets first-time buyers increase a 5% deposit with a £100,000 equity loan.
These four programs help first-time buyers purchase their first home.