Recent research suggests that 50 per cent of first time buyers need financial support from the Bank of Mum and Dad in order to buy their first home. For the remaining half that still need a financial boost but can’t benefit from this trusted source, other options may need to be explored. For many the Hotel of Mum and Dad is becoming increasingly commonplace and is seeing thousands of adult children returning home in search of free or reduced lodgings to help them save for a deposit.
Having just purchased a stylish two-bedroom house at Barratt Homes’ Warren Grove development in Storrington, West Sussex, Cheryl Piper (36) and fiancé Billy Humphreys (31) made the choice to live with their parents for two years to save for their home of choice. Combining the support of the Hotel of Mum and Dad combined with the governments Help to Buy scheme, which only requires a 5% deposit, the couple were delighted to move into their first home this June.
Cheryl says: “We weren’t in a position to borrow any money from our parents but when they suggested that we could move in with them and pay a reduced rent until we had saved up enough for a house deposit, the idea seemed like a good one. That way we could save what we would have been spending on rent and put it towards a house deposit and my parents didn’t have to dip into their own savings in order to give us a foot onto the housing ladder.”
The couple managed to save £20,000 by living at home over two years, which was enough to put down as a 5% Help to Buy deposit and cover other moving costs.
Cheryl adds: “Mum and Dad are so pleased to have been able to help us onto the property ladder and I know they also feel a real sense of achievement by helping us into our first home. We feel incredibly grateful to them to have been able to have had this opportunity to save and it is thanks to them that we are now in the position that we are in. Without their support and allowing us to both live at home for this time, we would have been looking at a future of renting, which certainly wasn’t what we had in mind. Now we are looking forward to getting married and starting our future in our own home.”
After two years of living at home, the couple have been able to secure their own house at a brand new development in nearby Storrington, Warren Grove by Barratt Homes. One of the first homes sold at Warren Grove, Cheryl and Billy were also able to benefit from Help to Buy. The popular equity loan scheme means that the couple could borrow up to 20% of the value of the property. This amount remains interest free for the first five years and can be paid back during this time, or when the property is sold – whichever comes sooner.
Cheryl adds: “Help to Buy has meant that instead of buying a small starter flat, we’ve been able to buy a lovely new house with a garden and it’s somewhere we hope to be for the next 5 years or so. Our plan for the loan is to remortgage after a couple of years and free up some equity to repay then. If this isn’t possible, we will delay for a couple of years which isn’t a problem. Either way we have been able to buy this lovely home and we are in a much better situation than we would have been in otherwise.”
Purchasing one of the first homes at Barratt Homes’ Warren Grove in Storrington, the development of just 98 homes is an ideal choice for homebuyers looking to secure a property in close proximity to the South Downs. The development, built on the site of the former Paula Rosa factory is attracting much interest from homebuyers following its official launch last month.
Lynnette St Quintin, Sales Director for Barratt Southern Counties says: “Warren Grove is a fantastic new development in Storrington; ideal for first time buyers, families as well as downsizers. Help to Buy will be a popular choice for homebuyers like Cheryl and Billy who need a little support to help them buy their own home with a lower deposit amount.
“The Bank of Mum and Dad is a great way to buy a property for those lucky enough to access it; for those who don’t, this proves that there are alternative options out there which all make homeownership a real possibility. We are increasingly seeing homebuyers get on the property ladder after a short period of living with parents and allowing them to make some significant savings.”
From their new home at Warren Grove, PR manager Cheryl and marketing recruitment manager Billy who both work in Brighton, will enjoy a 40-minute drive to work and easy access by train to London in 1hr and 14 minutes.
A selection of three- and four-bedroom homes is currently available at Warren Grove, with prices currently starting at £359,995. Further two- and four-bedroom homes are expected to be released for sale later this year. To find out more, or to make an appointment to view the show homes, call 08444 171 251 or visit www.barratthomes.co.uk.