IT’S CHEAPER TO BUY THAN RENT AT EDISON PLACE, RUGBY

Househunters in Rugby could save themselves more than £1,100 every year if they purchase a new build home through the Government’s Help to Buy scheme, rather than renting a property in the area, according to national residential developer St. Modwen Homes.

The award-winning housebuilder is behind the new homes at Edison Place on Technology Drive, and conducted the research following the Daily Telegraph’s findings, which revealed that rents are close to an all-time high across England and Wales – 1.3 per cent higher than the same period last year.

The ‘Manhattan’ three bedroom, semi-detached townhouse at Edison Place is priced at £291,995 (or £175,995 under Help to Buy) and could cost as little as £733 per month, plus a five per cent deposit of £10,999 when purchased under the government scheme, as opposed to the actual rental value of £825 per month – marking a monthly saving of up to £92.*

Under Help to Buy, St. Modwen Homes is giving people on all stages of the property ladder the opportunity to purchase a new home with a deposit of just five per cent. The purchaser will then need only obtain a mortgage for 75 per cent of the property, as the Government will lend up to 20 per cent of the value of the home through an equity loan – meaning that mortgage rates are much more manageable – but people will still own 100 per cent of their home. 

Guy Gusterson, Managing Director of St. Modwen Homes said: “The fact that many young people have been forced to rent well into their adult lives has caused the market to balloon, pushing rental prices sky high.

“Though it is widely recognised that renting is effectively throwing money away, people do assume that they are stuck in a rental trap as they cannot afford the substantial 20 per cent deposit previously required, yet they could own their own home under Help to Buy with a deposit of just five per cent.

“Under the Government scheme, we have seen the market really turnaround – for the first time in some years, people can purchase a three bedroom home with a realistic deposit of as little as £10,999 as opposed to the standard 20 per cent, equating to £43,999, which is simply unattainable for the majority of first time buyers. What’s more, based on our monthly mortgage calculations, by purchasing a new-build property at Edison Place, people could actually be financially better off.”

A total of 87 new homes will be delivered in the first phase at Edison Place, including two bedroom apartments, and two, three and four bedroom semi-detached and detached family homes – including three storey properties. The new homes are already proving popular, with over 25 per cent of homes sold from plan.

Typical of St. Modwen Homes’ design-led approach to housebuilding, the new properties at Edison Place all boast higher than average ceilings alongside large bay windows, allowing natural light to flood through the homes, and come with high quality fixtures and fittings as standard.

Ideally situated off Leicester Road, Edison Place is located just 500m from Rugby railway station, with regular connections to London Euston and Birmingham Stations in 45 minutes. Additionally, the £33 million Warwickshire College, which was relocated by St. Modwen Homes’ parent company, St. Modwen, is positioned south of the development, providing high standards of education for students aged 16-19.

For further information, and to visit the new show home at Edison Place, people are directed to visit the marketing suite, located off Technology Drive in Rugby, CV21 1RW, which is open Monday – Sunday, inclusive of the weekends, between 10am and 6pm. Alternatively, people can call 0844 243 4646 or visit www.stmodwenhomes.co.uk  

*      Figures shown are based on the current market price of the homes at the time of publishing and are based on purchases made through the Help to Buy equity loan scheme. The mortgage repayment value is based on a 25 year mortgage term with an assumed tracker for two years at 2.39 per cent followed by a variable rate of 3.99 per cent for the remaining 23 years. The total to pay over the full term is assumed to be £255,940.11. Typical APR is 3.8 per cent.