With rents rising more quickly than house prices, it is now cheaper to buy a property than pay rent. Bellway North London highlights that the cost of a mortgage on a one-bedroom apartment at its Crossways development in Slough is more than 20% cheaper than renting the same property.
Thanks to historically low interest rates for mortgages and schemes such as Help to Buy offering assistance in getting onto the property ladder, home owners stand to benefit from lower monthly outgoings than tenants. At Crossways, a development of contemporary apartments close to Slough town centre, the estimated monthly repayments on a one-bedroom property with a 75% mortgage through the Help to Buy scheme would be £725 a month, compared to a rental cost of £975.
The national picture tells the same story – according to data from Halifax, the average UK first time buyer spent £651 less in mortgage repayments than the average rental tenant in 2016. And the advantage for the homeowner is only set to increase as UK rents are expected to rise faster than house prices in the future. According to research by RICS, rents are predicted to increase by 25% over the next five years, while property values are set to grow by less than 20%.
All of the properties currently available at Crossways are offered under the Help to Buy scheme, where purchasers need as little as a 5% deposit. Using the government equity loan of 20% of the purchase price, buyers only need to find a mortgage for 75% of the value of the property.
Zoe Dobbs, Sales Manager at Bellway Homes North London comments: “Unfortunately for tenants, rents are rising steadily, a trend that is expected to continue, so it is no surprise to say that you are better off owning a property. Not only would you stand to benefit from any future increases in value, you would actually pay less on a monthly basis. Many people think that home ownership is unattainable, but through Help to Buy, that goal is much more easily in reach. Many of our purchasers at Crossways are taking advantage of Help to Buy and are pleasantly surprised how easy it is to get their foot on the property ladder.”
In total, Crossways will comprise 153 apartments in a mix of one, two and three bedroom layouts, all offering sleek and stylish interiors and a location that is within easy walking distance of Slough’s railway station.
The one-bedroom apartments available at Crossways include the Belle, which features an open-plan kitchen, dining and living area, a contemporary bathroom and a balcony. The excellent specification includes soft closing units and a range of integrated Zanussi appliances in the kitchen and Roca sanitaryware, a chrome heated towel rail and ceramic tiling to the bathroom. There are fitted wardrobes and carpets in the bedroom and wood laminate flooring to the living areas. A freestanding washer dryer is included in the utility cupboard and there is a video entry system for security. Gated car parking is also available for separate purchase
Crossways is conveniently located within close reach of Slough’s town centre where a major regeneration programme is delivering a wide range of new leisure and retail facilities. The redevelopment of Slough includes the upgrade of the railway station in readiness for the opening of Crossrail in 2019. Slough’s already fast and frequent train services into London, that currently take just 19 minutes, will be further improved by its inclusion on Crossrail’s Elizabeth Line, which will connect Slough directly with destinations across Central London, as well as Heathrow.