Why first time buyers aren't buying - And Redrow's attempts to reverse the trend

Tue, May 23rd 2006, 11:00

Whichever way you look at it, the outlook for most people trying to get onto the property ladder for the very first time has been pretty bleak in recent times.

According to the UK’s biggest provider of first time mortgages, the Halifax, the number of first time buyers has reached a 25 year low. Their research shows there were an estimated 320,000 first-time buyers in 2005, the lowest annual total since 1980 – and 10% lower than in 2004. The average age of a first time buyer is said to have risen to 33.

Another major lender, Bradford & Bingley, revealed in their annual First Time Buyer Report that 42% of first time buyers receive help from their parents to buy their first home; one in 10 are so desperate to get on the property ladder that they are taking a second job to make it possible; and almost half of first time buyers have thought about giving up buying altogether.

Closer to home in Taunton Deane, there are some equally depressing figures for those desperate for a place they can call their own.

According to Government statistics, the average salary for Taunton Deane in 2005 was £20,046 per annum, so assuming that the average first time buyer has a deposit of 10%, and can borrow 3.75 times their salary - they can afford to purchase a property for only £83,526.

In contrast, the average house price in Taunton Deane is said to be £186,899, with a terraced home – the traditional choice of many first time buyers – costing an average of £149,017. Even a modest flat will set them back on average £113,918.

In March this year, the borough council’s housing enabling officer stated that there were 3,600 people on the council’s waiting list. Of these, 735 applicants were classed as single/ young and 524 married/young, who all required affordable housing.

It is against this backdrop that housebuilder Redrow has introduced its award winning and innovative Debut range, aimed primarily at getting first time buyers onto the property ladder. With starting prices below £60,000, there has been huge demand for these homes across England and Wales – with some schemes virtually selling out in a matter of hours - and Redrow is now keen to bring Debut to Taunton.

Sim Manley, senior planning manager for Exeter-based Redrow Homes (West Country), says: “We are looking at a number of privately owned sites in the vicinity, and have been working in partnership with Taunton Deane Borough Council to bring a Debut scheme forward in the area.

“Having identified the need locally we are keen to see Debut being built and we’re sure that local people will appreciate the benefits of this housing range, not just for first time buyers but also to help kick-start the housing market further up the chain.”

Debut is Redrow’s solution to making home ownership accessible, affordable and easy to manage for first time buyers, with a legal framework in place to prevent buy-to-let investors purchasing the homes. Home buyers who choose a Debut home have the option to defer a portion of the purchase price (usually 10%) as an interest free fixed sum for up to ten years, making them even more affordable.

The property range includes single-storey one-bedroom dwellings and two-storey one and two-bedroom homes, including some with extra workspace. A combination of traditional and modern materials are used to give a contemporary look that’s visually appealing as well as practical. The overall result is a home that first time buyers can aspire to – brand new, contemporary, built to high quality standards and easy to maintain, as well as affordable.

Sim adds: “Our experience in other parts of the country is that these homes are being bought by people in their 20s and 30s, many of them key workers such as firemen, nurses and teachers. Many of these people have previously had little or no chance of affording a home of their own.”

As well as creating huge demand among customers, Debut has won critical acclaim and several top awards for bringing new homes within reach of genuine first time buyers. It was a major factor in Redrow being named ‘Major Housebuilder of the Year’ at the 2006 Building Awards - organised by Building magazine and one of the main events in the construction industry’s calendar - as well as being voted ‘Housebuilder of the Year’ by national consumer property magazine, Your New Home.

Debut isn’t just good news for first time buyers, it’s good for the planet too with eco-friendly and energy efficient features, such as communal heating and hot water systems which also provide cost efficiencies to the home owner. Debut homes can achieve an EcoHomes ‘Excellent rating’ from the BRE EcoHomes initiative, which assesses environmental quality of developments.

Taunton residents will get their first chance to see what Debut can offer at an exhibition organised by Taunton Deane Borough Council on Friday, June 9th, between 10am and 7.30pm in the Council Chamber. The exhibition is aimed at increasing awareness of the shortage of affordable housing, how the council is tackling the situation and the need for a wide range of solutions from both the public and private sector.

For its part, Redrow will be exhibiting plans, drawings and photographs of Debut schemes in other parts of the country, as well as a DVD presentation about the ethos behind the range and technical and design aspects of how it is delivered. There will also be the opportunity for people to register their interest in Debut, and people can also log on to www.debutbyredrow.co.uk for further information, including video walk-throughs of some of the properties.