Pregnancy Week 30

A [pounds sterling]55,000 first home? Yes, it really does exist; Property Mail.

Daily Mail (London) May 20, 2005 Byline: CHERYL MARKOSKY;NIGEL LEWIS Starter home prices are dropping as builders try to buoy up the whole market, reports Cheryl Markosky and Nigel Lewis THE STATE of today’s first-time buyers’ market has become very grave indeed.

In London, the average home costs [pounds sterling]257,195, and in most parts of the country it’s more than [pounds sterling]150,000 — well beyond the means of most young people trying to get a foot on the property ladder.

First-time buyers are already thin on the ground. There were just 361,000 last year — the lowest for 23 years — with the average age at an all-time high of 34. Last year, the typical first-timer had to put down a deposit of [pounds sterling]26,000 — [pounds sterling]2,000 more than the average annual salary — compared with just a few thousand pounds a decade ago.

And their woes continue. Research out this week by lender Bradford & Bingley shows 90 per cent of first-time buyers are not getting the home they want, either buying something smaller or having to continue renting.

So where can affordable properties be found? The building industry is finally waking up to their plight — in one case, offering homes for less than [pounds sterling]60,000.

Redrow Homes is building 103 eyecatching homes in Williams Green, near the centre of Rugby, Warwickshire, with prices starting at [pounds sterling]54,995 for a one-bedroom flat, rising to [pounds sterling]119,995 for a two-bedroom, two-storey apartment.

At first glance this would seem impossible, as two-bedroom apartments are hard to find in central Rugby for less than [pounds sterling]150,000.

But Redrow is adamant that there are no catches — all you have to do is live in them (to stop buy-to-let landlords snapping them up).

The developer says it has used the latest low-cost building techniques at the site and crammed in the homes to maximise the size of the plot.

The properties are being built in an attractive Scandinavian, clapboard style, proving that budget homeowning doesn’t have to mean living in a graceless eyesore. see here electrical engineer salary

Not surprisingly, demand is high, with more than 2,500 viewings so far.

In a wobbly property market, Redrow knows it has a development that will sell fast — so it’s about to begin a similar estate in Chorley, Lancashire.

We tracked down two more developments which are realistically priced for the novice homebuyer — Admiral’s Gate in Plymouth, Devon, and Saxon Walk near Basildon, Essex — and talked to some new owners at each.

* FOR more information, call Redrow Homes: 0845 676 0500; Galliard Homes (for Admiral’s Gate): 020 8418 1000; Barratt Homes (for Saxon Walk): 01702 615438.

DEVELOPMENT: Saxon Walk, Basildon, Essex — 62 apartments and nine houses, starting at [pounds sterling]129,995 SEANA CHARLES, 32.

JOB: Bank branch support.

SALARY: [pounds sterling]26,000.

PAID: [pounds sterling]146,000 for twobedroom flat.

INCENTIVES: 5 per cent deposit, free carpets, washer-drier, cooker.

UNABLE to get a mortgage on her own, Seana twisted her stepfather’s arm to act as her guarantor. But he needn’t worry about any risk, because the flat Seana fell in love with and bought for [pounds sterling]146,000 in September is already worth [pounds sterling]175,000.

‘I was renting for seven years,’ Seana says, ‘and my mortgage of [pounds sterling]620 a month works out about the same as I used to pay in rent.’ Seana got plenty of extras, such as a balcony leading off her bedroom, and her own parking space.

JESSICA HENLEY, 27.

JOB: Chandelier restorer.

SALARY: [pounds sterling]21,000.

PAID: [pounds sterling]130,000 for onebedroom flat.

INCENTIVES: Stamp duty, legal costs and 5 per cent deposit all met by developer. this web site electrical engineer salary

JESSICA was keen to invest in buy-to-let, but when she realised the help available for first-timers, she opted for her own offplan home instead.

And she is pleased with her top-floor choice.

‘I’m paying double the money every month I paid in rent so I don’t go out as much, but I’m happy to stay in with a couple of DVDs.’ DEVELOPMENT: Admiral’s Gate, Raglan Road, Plymouth — 56 apartments, from [pounds sterling]79,995 STEPHANIE PENDER, 31 JOB: Army recruiting sergeant.

SALARY: [pounds sterling]27,500.

PAID: [pounds sterling]105,000 for one-bedroom flat.

INCENTIVES: 5 per cent deposit, solicitor’s fees paid and ‘bonus’ roof terrace.

STEPHANIE is a single mum with a three-year-old son, so it’s no surprise that she found it hard to save for a deposit while paying rent and nursery fees for young Lewis.

‘I scraped together [pounds sterling]5,500 over three years, but it still wasn’t enough,’ she says.

But after spotting an advert for Admiral’s Gate, Stephanie jumped at the chance.

She queued for five hours to snap up a top-floor one-bedroom flat for [pounds sterling]105,000.

‘I was lucky. I got a new kitchen and a big roof terrace, where Lewis will be able to play. I can’t wait to move in.’ SOPHIE BAIRD, 20, and JAMES BLOWERS, 23 JOB: Computer operator and mechanical engineer.

SALARY: [pounds sterling]29,000 combined.

PAID: [pounds sterling]103,000 for two-bedroom flat.

INCENTIVES: Deposit and solicitor’s fees paid.

DETERMINED to get hold of a low-cost first home, Sophie queued outside the scheme for five days and nights.

‘We weren’t planning to buy until the end of the year, but this opportunity came up,’ she says. ‘I took time off work to queue, and there was a great atmosphere on the pavement.’ Number five in the queue, Sophie bought the home she wanted — a newly-painted and carpeted second-floor flat with new appliances.

‘Now we can put our savings towards furniture, kitchen units and a worktop.’ And Sophie has found just the man to do the work. He is a kitchen fitter she met while queuing .. .

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