Did you know? New research conducted by Halifax in 2021 concluded that in fact owning your own home will save you money and is nearly £1,400 a year cheaper than renting. In 2021, mortgage rates dropped to a historic low which caused a massive gap between owning and renting. Lenders took advantage of the recovering post-pandemic and the Bank of England’s base rate stood at just 1.0%, this is the official bank rate is the rate that the Bank of England charges banks and financial institutions.
As mortgage rates and the cost of borrowing fell, the cost of renting continued to rise due to a growing gap between supply and demand. Which conducted a survey of 2,003 renters between February and March 2022 and found, 59% were unable to find a property within their budget, 11% said properties were coming off the market too quickly and a huge 11% had their rental offer rejected. The lack of supply in the market left many tenants priced out, this led to renters offering above the asking rental price to secure a property.
We all know that historically stepping onto the property ladder was considered challenging due to substantial deposits that were required upfront, which meant that a lot of people turned to renting as it was more of an affordable option. However, the latest Rental Index data (May 2022) found, the average rent in the U.K is £1,103 per month which is 10.6% higher than this time last year. Removing London from this, the average price for rent in the U.K is £928 per month which is 8.7% higher than last year and is 0.9% higher than it was in April.
Buying a property is now a lot more accessible than it was. As the rate of inflation can increase and decrease, The Bank of England will adjust mortgage base rates accordingly. Although mortgage rates are increasing from the historic low base, there are always deals to be had - no matter the size of your deposit. Hagan Homes is not authorised by the Financial Conduct Authority and therefore cannot provide any advice in relation to mortgages.
Don’t forget you can also buy one of our properties with Co-Ownership up to £175,000 - now’s the time to make the most of it.
Check out our current developments now: www.haganhomes.co.uk
