With rental prices at a record high[1], leading developer Latimer, the development arm of the not-for-profit Clarion Housing Group, is calling attention to the huge monthly savings available by getting on the property ladder in a shared ownership home.

Based on recent rental price data from leading portals Rightmove and Zoopla[2], the monthly cost of a Latimer shared ownership home is now shown to be significantly lower than the cost of an equivalent rental property in each development's local area. The typical monthly saving is £298 nationally[3] and £250 for comparable properties in London[4].

Latimer has been crunching the latest rental numbers as part of their 'Why rent when you can own' promotion. Their findings underline the impressive value of shared ownership for aspiring home-movers looking to take their first steps onto the property ladder in a quality new home.  For example, at Latimer's Evergreen development in Harringay, North London, buyers can move in with a deposit of £7,500. That is equivalent to around three months average rental costs in the capital. In terms of privately renting in the area versus buying with shared ownership, with average London monthly rent costs of £2,480 and shared ownership monthly outgoings of £1,950 which is a combined cost of mortgage, rent and service charge on a two bedroom home at this north London development, homebuyers here would benefit from a monthly saving of £530.

Latimer is already witnessing many home movers making the move across from private rented accommodation into shared ownership, representing around 70% of buyers at the start of 2023. By contrast, this group represented less than 30% of buyers in 2021. A key driver for the increase appears to have been the end of the Government's Help to Buy scheme in October 2022, which over the previous ten years had enabled over 300,000 first time buyers to get on the housing ladder with a small deposit. With that route no longer available, shared ownership now offers a highly attractive alternative for those looking to exit the rented sector.

Paul Walker National Sales Director at Latimer by Clarion Housing Group, comments: “With rents at record levels, shared ownership gives homebuyers the benefit of lower monthly rental cost outgoings while also getting a foothold in the property market. For those considering shared ownership, our new 'Why rent when you can own' promotion demonstrates the clear value of starting your home ownership journey with Latimer, making rent work for you while investing for the future.”

A major benefit of shared ownership is the low deposit requirement. Many aspiring buyers find saving towards a deposit a hurdle in the current economic climate with their capacity to save squeezed by increasing rents and the cost-of-living crisis. However, purchasing a shared ownership home with Latimer requires just a 5% deposit for a share of the full price of the home.

Paul Walker continues: “Home buyers are surprised at how quickly they can get on the housing ladder with shared ownership as deposit requirements are far more achievable. Many are able to meet the deposit threshold for a shared ownership property in their local area with the equivalent of around two-to-three months' rent saved as a cash deposit. We recognise that may not always be feasible for many renters, but with our latest promotion we encourage those who can save up a small deposit to come and talk to us about the benefits of investing that money into a shared ownership property.”

At a time of rising energy costs, the energy efficiency of a new-build home over traditional housing stock also offers a further benefit to moving into a shared ownership property. Better design, insulation and energy-efficient features mean that those in a newly built property are in a position to save as much as £1,200 per year on energy bills in an apartment and up to £2,600 per year in a house[5].

As part of the 'Why rent when you can own' promotion, Latimer sales professionals are armed with a calculator tool to outline the cost benefits of shared ownership over renting at a postcode level. They'll also help to provide full clarity over mortgage costs and service charges. There is currently an additional incentive for home-movers to get on the property ladder with Latimer offering to pay mortgage brokerage fees on all shared ownership reservations made before 31 March 2023, a typical additional saving of £499 (terms and conditions apply).

Latimer has many new-build shared ownership homes available across the country including York and Manchester to London, East Anglia and the south. For more information and to see how much can be saved against the cost of renting in your area, please visit: www.latimerhomes.com/rent-into-investment

HOME-MOVERS EXPERIENCES

Case studies. Stories emerge across the UK of buyers achieving home ownership with shared ownership and finding themselves with significantly more space and a better-quality home, with similar monthly outgoings.  

Linu George Peter and Sam John Verghese purchased a 25% share of their home at Union Walk at The Green Quarter in Southall and gained a second bedroom, more living space and a private balcony after renting nearby for a number of years. Linu explains: “For us, home ownership wouldn't be possible without this scheme.  Our monthly outgoings, including bills, are pretty much the same as they were in our rental.  The gains are immeasurable though, as we are now on the property ladder and have somewhere we can call our own.”

Linu, a senior policy advisor for the civil service with a passion for writing and blogging, and her husband, Sam, a freelance book illustration artist, were eager to buy in Southall and move out of their rental property. Linu continues: “Previously, we were renting a one bedroom flat in Southall, but when our rent increased, it wasn't financially viable for us to stay there. We'd heard about shared ownership, so decided to research the scheme and quickly realised that it was the best option for us. I've spent most of my life in Southall and having my family and friends nearby was a priority. Without shared ownership, there's no way we could afford to stay in London. Also, the opening of the Elizabeth line has really increased the appeal of the area. My journey to work, which is in Westminster, now takes me just over 40 minutes.”

Young first-time buyer and paddleboard enthusiast Teodora Bogdan (25-years-old) was able to upgrade from her rented room to a two bedroom home with the help of the shared ownership scheme at Latimer's Potters Warren in the historic village of Elmswell, Suffolk. After a period of dedicated saving through lockdown, combined with studying for a master's degree to further her career, Teodora stepped onto the property ladder into an idyllic semi-rural village and has since been enjoying a life of freedom and her own space.

With shared ownership, Teodora purchased 40% of her home with a 5% deposit. She comments: “My home was £250,000 and I purchased 40% of it. My core monthly outgoings are just £50 more than they were in my rented room, which is quite unbelievable considering how much I've gained.”

Originally from Romania, Teodora relocated to London in 2009 with her family and moved to Ipswich in 2021 for a new job as a Design Civil Engineer. Alongside work, she studied a master's degree remotely at South Bank University whilst living in a rented room in a house with shared kitchen and bathroom facilities. Once she finished her studies, Teodora was keen to buy her own home. She comments: “With shared ownership, I discovered that a two bedroom house was within my price range and I was excited to start researching. I wanted to stay near Ipswich for work and to be close to friends, but I was keen to live in a countryside village setting. I saw Potters Warren online and was desperate to see it.  As soon as I went to view my home I thought; 'I am taking it!'.”

-ENDS-

For further information:  Contact the Latimer team at The Oracle Group

on 020 8394 2821 or email clarion@oraclepr.co.uk

NOTES TO EDITORS

Latimer's 'Why rent when you can own' campaign uses Zoopla monthly rental data at a postcode level to compare with the costs of a Latimer shared ownership property in that local area. For further information on these calculations, and for specific regional data, please contact clarion@oraclepr.co.uk

Buyers are able to move into a brand new 2 bedroom home at Union Walk for an estimated monthly cost of £1,450 based on purchasing a minimum 25% share. Visit www.latimerhomes.com to view available homes.

About Clarion Housing Group

Clarion Housing Group is the UK's largest housing association, owning and managing 125,000 homes for 350,000 people nationwide and across 150 local authorities. Clarion is committed to providing good quality and affordable homes to those who need them most.

About Latimer

Latimer is the development arm of the not-for-profit Clarion Housing Group. It builds homes for all tenures and reinvests any surplus back into the organisation to support its social mission. In 2020/21 Latimer built a record 2,126 homes – 90% of which were affordable.

[1] Rightmove Rental Price Tracker https://www.rightmove.co.uk/news/rental-price-tracker/

[2] Zoopla UK Rental Market Report https://advantage.zpg.co.uk/insights/rental-market-report/

[3] Based on example two bedroom house at Brindley Green www.latimerhomes.com/rent-into-investment

[4] Based on example two bedroom apartment in Harringay (Source: Rightmove Best Price Guide Jan 2023)

[5] Home Builders Federation study https://www.hbf.co.uk/news/new-build-houses-save-homeowners-2600-in-annual-energy-bills