The time is now

Investing in your first home is a major financial commitment at
any time.

If you want to keep that commitment under firm control, then it may pay to buy a new home because Government and housebuilders have come up with a range of initiatives and deals for first-time buyers to suit everyone's personal circumstances, whether you are unsure whether you really want to buy or are certain you do but have to reduce your outlay. The good news is that these provide ways of cutting the initial costs of home ownership, and you could even use your rent payment as a stepping stone into the housing market.

Rent first, buy later
The economic downturn has prompted a new wave of offers that allow buyers to rent a new home first and buy it later. The government is trialling a scheme, called Rent to HomeBuy, which allows first-time buyers and those earning £60,000 or less to rent a home at a reduced rent and later have the option to buy all or a share of the home. Housebuilders market their own variations on that theme. As an example, Bellway Homes' ‘Try before you buy' scheme allows would-be purchasers to rent a new Bellway home for up to 12 months.

At the end of the year the tenant has the option to buy the home. If the tenant decides to buy, their previous rental payments are deducted from the sale price of the home. The small print of the deal says rental applicants must be able to show three years history at a previous address and six months employment history. Applicants must pay an initial fee of £150 plus VAT to cover referencing and compilation of a tenancy agreement, a deposit and a month's rent in advance.

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