As a nation of homeowners it may come as no surprise to find that owning your own home is cheaper than renting, to the average tune of £200,000.
New research conducted by Barclays shows that over fifty years the typical cost of purchasing, maintaining and mortgage payments on a home, amounts to £429,000 compared with £623,000 in rent.
“We are pleased that this research has been conducted supporting the genuine message that we have been telling prospective purchasers,” said Steve McElroy sales director Miller Homes Yorkshire. “Buying your own home is still a very viable proposition and, when compared with the cost of renting makes solid financial sense too. In the Yorkshire and Humber region the saving was over £280,000.”
The research showed that whilst renting was initially cheaper, over time home owners soon began to reap the benefits of being an owner occupier including long term financial security.
“Taking the first step onto the property ladder can often seem like a huge financial commitment and the need for large deposits has had a detrimental effect in recent years,” said Steve. “Miller Homes is committed to helping buyers with a range of purchase incentives and the recent launch of ‘NewBuy’ across our developments has seen a return to mortgages where a smaller deposit is required.”
NewBuy has been designed to help overcome the large deposit gap for many potential homebuyers by enabling them to purchase a new build property with only a small deposit of 5-10%. Lenders participating in the scheme will then provide a 90-95% loan to value mortgage for those who meet their qualifying criteria.
Whilst location is a key factor in the purchase of a home the age and style of a property will have a financial impact too. Energy bills are on the rise whether you are a tenant or property owner and half the heat lost in a typical home is through walls and the roof. More than 80 per cent of home energy used is for heating and hot water.
However, new homes are built to the latest environmental standards and are six times more energy efficient than older-style properties, making them an attractive option for home ownership. In addition to impacting on day to day running costs, owning a newly built property can also provide purchasers with peace of mind in relation to the financial sustainability of their investment.
“New homes are typically very efficient with the latest low energy, high output heating systems, windows and insulation fitted to ensure they remain efficient and cost effective,” said Steve. “This delivers further cost saving benefits for home owners as they can maximise their investment whilst reaping the rewards on a monthly basis.”
Miller Homes has twelve developments located across the Yorkshire region including city centre and rural developments. Properties range from two bedroom apartments priced at £75,500 to five bedroom luxury homes priced from £320,000.
Further information can be obtained by visiting Miller Homes