First-time buyers want to purchase homes 'a bit at a time'

Buying a house on the open market will soon be a thing of the past for most first-time buyers, who say they will be purchasing their homes ‘a bit at a time’, according to research by a leading housing association.

Nearly three quarters of 16 to 34 year olds polled in East Homes’ annual My Home survey think that the part-buy, part-rent scheme known as New Build HomeBuy will soon be the only viable option for them.

"It’s a startling statistic which could have major implications for the nation’s property ownership habits," said Kate Worley, head of sales and lettings at East Homes, part of the East Thames Group.

"It’s essential first time buyers continue getting on the ladder and they could find a level playing field again after years of out-of-reach prices and the more recent difficulties in getting a mortgage on the open market.

"Part-buy, part-rent is one of the few options for first time buyers who can’t afford the huge deposits currently necessary for homes on the open market.

"There’s still flexibility in the mortgage deals available, with some lenders continuing to offer mortgages up to 100 per cent, so it’s a good option for people who still aspire to buy their own home," she said.

Under New Build HomeBuy, first-time buyers can purchase a share of a new property, typically 25 to 50 per cent, and pay a subsidised rent to the housing association on the remaining value.

They have the option to ‘staircase’, that is buy additional shares in the property when they can afford to do so, up to the full open market value.