With households feeling the squeeze from the rising cost of living and higher interest rates, saving to get onto the property ladder may feel even further away. But, with reduced deposit sizes, Shared Ownership offers an opportunity to step onto the property ladder. Discover how a home with Shared Ownership may actually help you tackle some of the recent spikes to the cost of living.
The Rise in Energy Bills
In recent weeks, the price of gas has increased significantly with many households across the UK having to pay more for their energy. This applies especially to those living in older properties who typically tend to use more power to heat their homes.
By supporting the transition to net-zero carbon homes, we can help reduce monthly costs for our customers and protect the environment. Did you know that all of the homes we build will be net-zero carbon enabled, gas-free and use renewable energy to further support the transition to zero carbon homes? This will help protect residents from energy price volatility and provide more sustainable options for our customers.
With Shared Ownership, you could secure an efficient new build home, which will typically emit 2.38 tonnes less carbon compared to an average older property. According to the report ‘Greener, Cleaner, Cheaper’, owners of new build properties save an average of £435 a year – and potentially up to £555 a year.
Changes to Student Loan Repayments
Earlier this year, the Government announced that it will lower the repayment threshold from £27,295 a year to £25,000 for student loans.
Additionally, outstanding student debt is currently written off after 30 years. But – under the new plans – the term over which graduates will have to repay their loan will increase to 40 years.
Luckily, in order to be considered for a Shared Ownership property, your student loan repayments won’t affect your application.
However, we do require you to have a good credit history; the better it is, the more likely you’ll be accepted onto the scheme. Not sure what that means? Check out our FAQs to find out more.
Increase to National Insurance Threshold
The rate at which you pay National Insurance has increased by 1.25%. This means that workers will see their National Insurance contributions rise from 12% to 13.25%, resulting in a decrease in take-home pay.
While the cost of living increases as a result of National Insurance, amongst other things, Shared Ownership provides a pathway to the property ladder and could save you money each month.
For example, the average rental value in West London today is £820 per week. Compare this to a one-bedroom apartment at The Moorings, West London – priced at £390,000 and with a 25% share value of £97,500 – the rent is only £670 per calendar month.
Whilst the cost of living crisis unfolds, we continue to provide an array of top quality, modern apartments and houses across England, all of which are available to purchase with Shared Ownership. Start your search by viewing our available properties.