Buy­ers give them­selves a break at mum and dad’s ho­tel

First-time buy­ers are bat­tling to make a come­back and the “ho­tel” of mum and dad is help­ing them to save a de­posit. Sharon Dale re­ports.

Yorkshire Post - Property - - PROPERTY -

IT’S a ques­tion that par­ents reg­u­larly ask their teenage chil­dren: “What do you think this is? A ho­tel?”

The an­swer, ac­cord­ing to the Of­fice for Na­tional Sta­tis­tics, is “yes” and it is likely to trade for far longer than the own­ers ever ex­pected. The ONS has re­vealed that the num­ber of young adults still liv­ing with their par­ents in York­shire has soared by over 40 per cent over the last decade.

House prices that are an av­er­age of 4.4 times their in­come, the cost of rent­ing and youth un­em­ploy­ment are all rea­sons why 20-34 year-olds opt to live with their mum and dad, though a grow­ing num­ber are stay­ing or mov­ing back to save for a mort­gage de­posit.

Kelly Maw and her part­ner Ja­son moved to his par­ents’ house for a year so they could save up. They were each pay­ing £400 plus bills to rent a shared town­house in the trendy Leeds sub­urb of Chapel Aller­ton.

When they moved to Ja­son’s par­ents’ home in Bail­don, they paid £100 each a month for food and bills and agreed that they would stay no longer than 12 months. They are now rent­ing again while hunt­ing for their first home.

Es­tate agent Kelly, 28, who works at Man­ning Stain­ton in Guise­ley, says: “We had a lot of out­go­ings and there was noth­ing left to put in a de­posit pot. Now, we’ve paid off credit card debts and we’ve been able to save.

“We sug­gested mov­ing in with Ja­son’s par­ents and they were happy to help us. Luck­ily, they have four bed­rooms and an en­suite, so there was room.”

They took turns to do the cook­ing and the cou­ple punc­tu­ated their stay with reg­u­lar week­ends away to give them time to them­selves.

“Ja­son’s mum and dad are ab­so­lutely bril­liant and easy go­ing but I think it was a bit more awk­ward for me be­cause they aren’t my par­ents. I felt I had to watch my Ps and Qs but I’d def­i­nitely rec­om­mend it as a way of sav­ing a de­posit. We couldn’t have done it oth­er­wise.”

While the ONS sta­tis­tics look gloomy, Mark Man­ning, sales di­rec­tor of Man­ning Stain­ton, has good news on the first -time buyer front. He says first-time buyer reg­is­tra­tions at the firm’s West York­shire branches have in­creased by 47 per cent over the past year.

“Im­proved lend­ing has helped but I think the main rea­son is a gen­eral feel good fac­tor about the prop­erty mar­ket. Those who were wor­ried about prices fall­ing now have the con­fi­dence to buy and there are oth­ers who are panic buy­ing in case prices go up and they can’t af­ford any­thing,” says Mark, who adds: “I don’t think they should worry too much. House prices will rise over the next few years but I think it will be grad­u­ally.”

In­stead of panic buy­ing or fret­ting that you’ll never be able to af­ford a house, take time to study prices in your area, get some sound ad­vice and plan a strate­gic ap­proach. A de­posit is cru­cial, but the per­cent­age needed is de­creas­ing. The Gov­ern­ment’s re­cently launched Help to Buy mort­gage guar­an­tee scheme aims to help buy­ers get 95 per cent mort­gages.

How­ever, mort­gage ad­vi­sors, in­clud­ing York­shire Post colum­nist Franz Muehlthaler, are scep­ti­cal.

“The scheme has re­ceived less than 1,000 ap­pli­ca­tions and has no im­me­di­ate ben­e­fit to the would-be bor­rower,” says Franz, who works for Hol­royd Miller es­tate agents. “There are now a num­ber of lenders of­fer­ing 95 per cent mort­gages, so do not get caught up in specif­i­cally look­ing for Help to Buy, which may be more costly.”

He points out that Wool­wich has a 95 per cent mort­gage with rates start­ing at 3.69%, com­pared with a typ­i­cal rate of five per cent on Help to Buy prod­ucts.

“There are ad­di­tional re­quire­ments on the Wool­wich scheme, so ten per cent needs to be de­posited in an in­ter­est­bear­ing sav­ings ac­count with Wool­wich and will be re­turned plus in­ter­est af­ter three years. It should not be ig­nored, as the lower in­ter­est rate would save you £70 per month,” says Franz.

Mark Man­ning sug­gests that all first-time buy­ers talk to a mort­gage ad­vi­sor be­fore house hunt­ing to check loan el­i­gi­bil­ity and bud­get. The next step is to iden­tify all the houses in your price range. Al­though prop­erty hotspots are of­ten pro­hib­i­tively ex­pen­sive, there are other ar­eas of York­shire where hous­ing is much more af­ford­able.

Look at the fringes of your pre­ferred lo­ca­tion or buy in an af­ford­able area and build up some eq­uity so you can move on.

A prop­erty por­tal search of Leeds ear­lier this week re­vealed that there are 71 homes on the mar­ket un­der £50,000. Some are shared own­er­ship, which is another op­tion for buy­ers.

An apart­ment in Queens Court, Mount Pleas­ant Road, Pud­sey, is on the mar­ket for £69,950 with Man­ning Stain­ton with 75 per cent shared own­er­ship. A two bed­room semi in New Ear­swick, York, on with Stephen­sons, is £82,500 for shared own­er­ship.

“My view is that it’s a good time to buy or at least to start sav­ing for a de­posit,” says Mark Man­ning. “If mov­ing back in with par­ents for a bit is an op­tion, then why not do it? “Twit­ter: @prop­er­ty­words

TRANS­FOR­MA­TION: Wood Grove has been rad­i­cally up­dated and now boasts five bed­rooms with en-suites and a large liv­ing kitchen. The grounds also have a grade two listed stone folly, that is now a gar­den room/gym. The house is in Lin­ton, at the heart of York­shire’s “golden tri­an­gle”.

SHARE THE BUR­DEN: An apart­ment in Queens Court, Pud­sey, is £69,950 for 75 per cent shared own­er­ship, www.man­ningstain­ton.co.uk

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