Cost of living crisis sees home buyers in Scotland downsize and rent out rooms to save cash

01/09/2023
Barratt Homes - The Strand in Portobello Edinburgh

THE UK’s biggest housebuilder has revealed how the cost-of-living crisis is changing the criteria buyers in Scotland are setting for their first or next home, with house hunters sharpening their focus on their income long term.

The Tackling the Cost of Living Crisis – 2023 Report by Barratt Developments PLC – which includes Barratt Homes and David Wilson Homes, found that almost a third (31%) of prospective buyers in Scotland are considering buying and renting out a room for additional income. 

The research also showed a trend towards shared homeownership as consumers struggle to buy solo. A third (33%) of those surveyed are considering buying with a friend or family member and four in ten (44%) are considering an apartment instead of a house to save money. Of those already on the property ladder, half (50%) would downsize to a cheaper home to save money on bills.

Doug McLeod, regional managing director for Barratt Developments Scotland, said: “There’s no doubt that the cost-of-living crisis has changed the way people are buying homes. Worries around rising interest rates on mortgages, inflation and energy bills have seen people consider new ways to generate income, including renting out a spare room. We also expect to see apartments grow in appeal, thanks to lower costs and convenient locations in city centres, close to workplaces and entertainment.

“While the current economic outlook has undoubtedly impacted buyer behaviour, our research shows that people are still more confident than not in the UK housing market. With this in mind, we have launched a variety of schemes to support those looking to invest in property, including mortgage contributions and deposit help for first time buyers.”

To help ease the financial burden of purchasing a new home, Barratt Developments recently announced a deposit or mortgage contribution scheme, offering homebuyers up to £30,000 towards their deposit or mortgage repayments.

Barratt Homes and David Wilson Homes is giving house hunters a helping hand to make their move to a greener home via its deposit or mortgage contribution scheme, which sees the housebuilder contribute £1,000 for every £20,000 of the purchase price of the property, up to a total of £30,000. 

Thanks to advanced systems and technologies, Barratt homes are up to 64% more energy-efficient, which could save homeowners up to £2,200 per year on bills, based on HBF “Watt a Save” report published July 2023.  

The full report is available to read here.

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