30 January 2024 ·
Save to Buy scheme launched in London for First-Time Buyers
Eleonora and Stan were the first to benefit from Fairview New Homes’ game-changing scheme.
Fairview’s game-changing Save to Buy scheme that enables first-time buyers to save for their final deposit via fixed monthly payments while living in their new home.
The popular scheme first launched at the developer’s Epping Gate development in Essex at the start of 2023 and has since had over 17,800 enquiries.
Save to Buy monthly payments are based on the area’s average monthly rent and the buyer’s personal finances, of which 100% goes towards the buyer’s deposit and/or affordability deficit on the Fairview home.
The scheme is designed to help first-time buyers who are struggling with record-high rental costs, with average rents in London hitting an all-time high of £2,627 pcm in Q3 last year according to Rightmove; 12.1% higher than the previous year.
Data from a survey conducted by Fairview New Homes of 1,000 UK adults aged 18-45 yet to purchase their first home, found that 90% of London renters believe the cost of renting has negatively impacted their ability to save for a deposit. This is up 7% from the previous year.
Chris Hood, Sales and Marketing Director at Fairview explains why the developer has decided to launch Save to Buy in London: “We were overwhelmed by the response to Save to Buy last year but in truth, not all that surprised when you consider the ongoing challenges that first-time buyers in this country face, and particularly in London.
“One of the queries we were most often met with was ‘is it available in London?’. With our Dock28 development in Woolwich having launched in the second half of 2023 and four more developments launched in 2024, it felt like the right time to bring it to the city.”
“Our research found that over half (56%) of non-homeowners in the capital are not confident that they will be able to purchase their own home within the next two years. A year ago, this stood at 23%.
“Our hope is that by bringing Save to Buy to London we can speed up the dream of homeownership for a few of these people.”
In June 2023, Eleonora, 32, and Stan, 28, moved into their one-bedroom apartment, costing £339,000, after successfully applying for Save to Buy and in November, the couple officially completed and became homeowners for the first time.
Eleonora said: “It’s crazy – at the start of the year (2023), our dream of owning our own home seemed so far away. Once we moved in, we always felt certain that this moment would come.
“We would’ve had to wait another three years to buy if it wasn’t for Save to Buy.”
Below are examples of Save to Buy terms and resulting deposit savings:
|
Minimum deposit to exchange |
Monthly deposit payments |
Save to Buy term |
Total Save to Buy deposit built (fixed payments) |
|
1% |
£1,500 |
6 months |
£9,000 |
|
1% |
£1,500 |
9 months |
£13,500 |
|
1% |
£1,500 |
12 months |
£18,000 |
For more information on the Save To Buy scheme, visit our page.
Frequently asked questions
First-time buyers aged 18+, in full-time employment (for a minimum of three months) with minimum savings of 1% of the value of the house they wish to buy. You will need to be qualified by a third-party financial advisor to confirm affordability and credit score.
You only need a 1% deposit to get started once you have qualified for the scheme.
The maximum term a buyer can use this scheme is two years, although Fairview expects most to complete their home purchase within six-12 months.
Fairview’s Save to Buy scheme is available on selected plots in developments in London and Essex, depending on availability. All Save to Buy Fairview homes currently available can be found here: https://www.fairview.co.uk/buying-with-fairview/save-to-buy/
There is currently no deadline and Save to Buy will run on an ongoing but not indefinite basis. Its suitability will be regularly assessed by Fairview.
Absolutely. You can either pay the minimum fixed term or pay an increased amount agreed with Fairview. If you find you are able to complete the required deposit sooner than expected, you are under no obligation to remain in the Save to Buy term if you’d like to complete sooner. There’s always ways Fairview can help to complete sooner.
You will be advised to speak to your sales advisor as all situations will be treated on an individual basis. If a buyer decides not to proceed with the property purchase after exchanging, the 1% deposit will be refunded, however monthly deposit payments made to date would not be returned.
You will own 100% of the property. Once legally completed, Fairview will have no share of the property – it’s all yours to make into a home.
Get in touch with a member of the Fairview Save to Buy team on [email protected] or call 020 8023 7092.
It will be first-come-first serve, so Fairview encourages people to register their interest and talk to a member of the team as soon as they can as they are expected to be snapped up quickly. Plots will likely be released throughout the year, so if you are not in a position to take part right away you will be added to a waiting list.