Unlocking the Door for Rural First-Time Buyers

19 May 2012

Deposits, mortgages, fees and furniture costs - for many people buying their first home can turn into a vicious circle of constantly chasing funds.

Securing a mortgage can be next to impossible if buyers don't have a 'healthy deposit' but saving for deposits of around 20 to 30 per cent, in order to get a reasonable mortgage deal, can seem to take an eternity.  

While purchasing is hard at the moment for any first-time buyers it can be particularly difficult for those from small towns and villages.

For many years now it has been difficult for young adults who have grown up in villages to be able to afford a home close to where they were raised, as the desire to move away from the rat race continues to appeal to more and this has driven up the cost of rural homes.

Moving home is certainly a costly business especially for first-time buyers so its no wonder that many are being priced out of the towns and villages where they grew up.

Just 10 years ago the average countryside home cost around £95,000, but the price of these have since rocketed by 125 per cent and now average £214,000. While the value of houses has soared, salaries have not increased quite so dramatically which is leaving some villagers out in the cold.

Escalating house prices will more often than not force young buyers to look for cheaper homes outside their villages. Should prices continue to rise, young people may completely turn their backs on our small towns when it comes to house hunting, taking their talent and skills with them - this has always been a challenge for places like Northumberland which has no universities of its own and has to fight tooth and nail to attract talented people to the jobs here.

In order for traditional villages to survive they are reliant on young people being able to afford to continue living there even after moving out of their family home.

For some time now builders have been helping out first-time buyers by offering them a helping hand with their deposits which will have helped many young people.

And now it appears that even more first-time buyers in Northumberland will be able to get their foot on the property ladder as Lloyds TSB has announced it's piloting a new scheme in the county with support from Northumberland County Council.

This pioneering scheme should hopefully offer a boost to the county's property market by helping first-time buyers who can afford monthly mortgage repayments but don't have a sufficient deposit to own their property.

Any Northumberland residents worried about issues surrounding debt, housing, employment, welfare benefits and family law can contact DAWN Advice for free support and legal advice through the new advice line on 0844 4111 309.