Rents and house prices in the East Midlands have experienced the biggest increase in the UK, with property prices in the popular city of Derby rising by 54% in the last decade.1 For homebuyers keen to find a way to purchase a home in this sought-after county, the government-backed Shared Ownership scheme offers an affordable route to owning a home for less – which is how Jason Palmer (53) and his partner, Helen Collins (53) successfully purchased their home together. By using Shared Ownership with Places for People, Jason and Helen exited the rental market and purchased a brand new two-bedroom house at Flagshaw Pastures in Ashbourne, Derby.
Having been renting with friends for a year after getting divorced, Transport Manager Jason explains why he and Helen opted to buy a home together using Shared Ownership: “Helen and I had been together for a while and rather than both of us waste money on renting separately, we decided to buy a property together. I was living in a rented house with two friends, Helen was renting a flat with her 14-year-old son, Liam, in Derby. I also have friends who had purchased their property using Shared Ownership and knew it would be an affordable way to buy a home, and at our age we wouldn’t be able to tie ourselves into a large, long-term mortgage – so Shared Ownership was a really good option for us. We found a Shared Ownership development nearby we liked, were approved by a financial adviser to purchase a 75% share, however all the properties were allocated before we even had a chance to view. We saw a few other properties and had no luck, in fact we were starting to get quite disheartened that we wouldn’t find anywhere suitable, then Helen was searching online and found Flagshaw Pastures with Places for People.”
Jason continues: “The development was ideal, its located less than a mile away from where Helen was renting, where she works and where her son goes to school. We had viewed a particular two-bedroom property online, and when we enquired were really pleased the house was still available, so arranged to view – it was like it was meant to be! As the house is at the end of the row, the garden extends to the side and is one of the largest amongst the Shared Ownership properties. We were qualified by the independent financial adviser with Places for People who confirmed we were eligible to purchase a 75% share of £217,000. We paid £162,750 and put down a deposit of £16,275 (10%), our monthly mortgage payment is £955.10 and the rent we pay to Places for People is £166.77. Thankfully we managed to secure a five-year fixed term mortgage at 3.1% – and we still have more than four years before we need to think about an alternative product, we were really lucky considering how much the interest rates have now risen.”
Talking about their new home and how it suits their lifestyle perfectly, Jason says: “We secured the house in May and moved-in last September, which was a month earlier than we expected which was amazing! The house is ideal, we were cautious to buy somewhere that was the right size so that costs like energy bills and council tax were lower, we also want to enjoy our lives and not feel like we are living to work and pay bills! I have a 13-year-old son Dylan, who comes to stay with us and there is plenty of room for everyone. The open-plan layout makes it feel really spacious and bright, yet we can all enjoy our own space. Being the end house, little things like having a bit more green space and a window in the bathroom make such a big difference. We also have two allocated parking spaces which is great when we have friends or family come to visit.”
Explaining about the monthly savings they now enjoy as a family, Jason and Helen explain: “We were paying around £1,400 a month in rent payments between us, we now pay less than £1,200 per month. The money we have saved we have spent on getting the house how we want it and opening a savings account for those rainy days and good times with our boys. Being a new build house, it’s also extremely energy efficient. We recently received a bill which covered the period from September to April, and it was £610 – we couldn’t believe how cheap it was! We are also on a fixed tariff with our energy provider, so we know that isn’t going to change anytime soon. Under Shared Ownership if anything goes wrong in the house it’s covered by Places for People so we will be saving on the normal maintenance costs too.”
Providing their opinion about the Shared Ownership scheme, Jason says: “I have had friends say negative things about Shared Ownership, and friends who have had a nightmare with their housing associations – I am very glad we did it. Shared Ownership has meant we have been able to purchase a high-quality property that we may not have been able to afford otherwise, and by being able to purchase a share we feel much more secure about having a smaller mortgage. Since we have moved in, I have received a promotion and pay rise at work, so Helen and I hope to be able to staircase and buy the remaining 25% share, and even reduce our mortgage term too. We are advocates of Shared Ownership; I have young drivers that are part of my team at work who have looked into utilising a new 100% mortgage product, but they can’t save the required deposit they need in order to buy on the open market – I have told them all to use Shared Ownership because of the lower deposit amount. Buying a Shared Ownership property gives you a stepping-stone to be able to move up the ladder and eventually buy on the open market, however we are very happy here and don’t foresee any reason to move from Flagshaw Pastures – it’s perfect for us.”
All homes at Flagshaw Pastures are now reserved. For more information about the new collection of Shared homes coming soon at the nearby development Marble Square in Derby, please visit www.homestobuy.placesforpeople.co.uk/find-a-home/marble-square-derby/ or call 01420 730032.