Mortgages and Moving in Milton Keynes - Mortgage Light
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Mortgages and Moving in Milton Keynes IN CONJUNCTION WITH THE SHARED ELEVATION ESTATE ABBEY NEW SUPPORTED WITH FINDINGS BY OWNERSHIP SHOP AGENTS HOMES CENSUSWIDE
Mortgage Light
Mortgages and Moving in Milton Keynes
Contents Introduction
Introduction SIOBHAN HOLBROOK For all these reasons, it felt like the right onto the ladder has become even more
An insight into Milton Keynes: Survey results and trends FOUNDER OF MORTGAGE LIGHT time to launch a residential property of a challenge, but I was, and still am,
This year marks Mortgage Light’s 10th report that focusses specifically on the determined to show that there is an option
Making the most of your options
anniversary, and it has been an interesting Milton Keynes market by people who available for every aspiring homeowner.
It’s been a surprisingly good year for moving live and work in the area and know first We want this report not only to inform, but
12 months to say the least. Financially,
Shared ownership and Milton Keynes the pandemic has hit many of us hard, hand what’s happening here. Comprising start conversations about homebuyers’
Homebuying in action although stamp duty holidays and research, statistics and insights from options and the schemes which can best
mortgage guarantee schemes seem to estate agents, first-time buyer specialists help them.
The market in Milton Keynes
be protecting the property market. Our and homebuilders, our first edition of We pride ourselves on being a Milton
Find out more Mortgages and Moving in Milton Keynes
lifestyles have changed too; we need more Keynes-based mortgage broker; our team
access to green space, a study at home, serves to shed light on the market, is dedicated to helping people find the
to be nearer to family. Who knew in March buyers’ needs and the tools available to right mortgage for them, whatever their
2020 this is where we’d find ourselves? homebuyers to make home ownership circumstance. If you’d like to share your
possible. thoughts or would like to start a discussion
When I founded Mortgage Light in 2011 about what you read here, please do get in
the average cost of a home in Milton touch:
Keynes was £194,624*, 63% less than the info@mortgagelight.co.uk
current average. There’s no doubt stepping
WWW.HOME.CO.UK/GUIDES/HOUSE_PRICES_REPORT.HTM?LOCATION=MILTON_KEYNES&STARTMONTH=01&STARTYEAR=2011&ENDMONTH=12&ENDYEAR=2020
In 2011 the
average cost of a
home in Milton Keynes
was £194,624*, 63%
less than the current
AVERAGE PROPERTY SELLING PRICES IN MILTON KEYNES (£000’S)
average
DETACHED
SEMI DETACHED
TERRACED
APARTMENT
ALL
2 3
Mortgage Light
Mortgages and Moving in Milton Keynes
An insight into Milton Keynes
45% would
In February 2021, Mortgage Light and Censuswide* surveyed people in Milton Keynes to find out more about their plans to buy, sell
or stay put. Why do people want to move home at the moment? What schemes would they consider using to do so? What might be
45% be deterred from
stopping them? Take a look at the results… moving this year
WHAT WOULD DETER
due to affordability
YOU FROM MOVING?
concerns
People have reasons to be
cautious in 2021, namely the 31%
27% impact of the pandemic on
the economy and on social
29%
24% distancing, however the
28%
23% HOME OWNERSHIP IN MILTON KEYNES Of the biggest challenge for people
is affordability.
Around a quarter of people described people living
themselves as a homeowner not looking with their parents, 20%
20% are aged 17% 28%
COST
to move (27%). 24% are living with parents, COVID19 AND DISTANCING RESTRICTIONS
UNCERTAIN WHEN THE PANDEMIC WILL END
and another 23% renting a home. 35-44 JOB UNCERTAINTY
16% of people would
6%
BREXIT AND UNCERTAINTY AROUND
8%
ECONOMY
STAMP DUTY HOLIDAY ENDING
11% be deterred
6%
UNCERTAINTY AS TO WHETHER I WILL BE
OFFICE OR REMOTE BASED
N/A NOTHING WOULD DETER ME FROM
due to job
8% uncertainty
5%
MOVING HOME IN 2021
NOT SURE
1% 5%
HOME OWNER NOT LOOKING TO MOVE LIVE WITH PARENTS
RENTER FIRST-TIME BUYER
HOME MOVER (SELLING AND BUYING ANOTHER) INVESTOR
HOME MOVER (LOOKING TO DOWNSIZE) OTHER
44% of the
people surveyed
would consider using
Help to Buy but
39% 26% of people
44% haven’t used it yet
WHY DO PEOPLE WANT TO MOVE? considering a 42%
It’s no surprise that the pandemic has changed 27% move need more
people’s priorities when it comes to their living outside space 36%
situation. People considering a home move have
a clear priority – more space, outdoors and in, 26% PURCHASING A HOME: 33%
and they also want to be nearer to family. Perhaps 25% SHARED OWNERSHIP
surprisingly, only 13% would move to make the AND HELP TO BUY
21% 22%
most of the Government’s stamp duty holiday. Home ownership support
12%
schemes are pretty popular
with buyers in Milton Keynes.
11%
Nearly 40% 10%
of people considering a
Nearly three
home move would do so
quarters (74%)
for a bigger home
of people aged 35-44
and home working
have used or would
space BIGGER HOME/OFFICE MOVING CLOSER TO FAMILY SHARED OWNERSHIP HELP TO BUY
NEEDED OUTDOOR SPACE MOVING OUT OF A CITY
STAMP DUTY HOLIDAY I WOULD NEVER CONSIDER MOVING HOME
use Help to Buy HAVE USED
WOULD CONSIDER USING BUT HAVEN’T USED
HAVE USED
WOULD CONSIDER USING BUT HAVEN’T USED
OTHER HAVEN’T OR WOULDN’T CONSIDER USING/NOT SURE HAVEN’T OR WOULDN’T CONSIDER USING/NOT SURE
4 *See back cover for information regarding data set. 5
Mortgage Light
Mortgages and Moving in Milton Keynes
Survey Summary: Key Findings
Of the people living with their parents, 20%
are aged 35-44
Nearly 40% of people considering a home
move would do so for a bigger home and home working space
45% of
people love
Milton Keynes for its 26% of people considering a move
sense of community need more outside space
and friendly
atmosphere 54%
WHY DO PEOPLE LOVE TO LIVE IN
MILTON KEYNES?
21% people think the good schools are a
Most important to people is the green space
key benefit to living here
37% in the area – over half said so (54%). The town
34%
centre itself is a big draw (34%) as well as the
transport connections the town offers (37%).
44% of the people surveyed would consider using Help to Buy
GREEN SPACE GOOD TRANSPORT CONNECTIONS
Both Shared Ownership and Help to Buy have
TOWN CENTRE GOOD CHOICE OF RESTAURANTS
FRIENDLY ATMOSPHERE SENSE OF COMMUNITY
GOOD SCHOOLS GOOD CHOICE OF ENTERTAINMENT
24% GOOD CHOICE OF BARS/PUBS
THERE ARE NO MAIN BENEFITS TO LIVING IN MILTON KEYNES been most popular with the 35-44 age group –
23% nearly three quarters of them (74%) have used
22%
21% or would use Help to Buy, 70% have or would
20% use Shared Ownership
16% 36% of people surveyed have considered using
21% shared ownership to purchase a home
people think the
4% good schools are
45% would be deterred from moving this year
a key benefit
to living here due to affordability concerns
28% of people would be deterred
due to job uncertainty
45% of people love Milton Keynes for its sense
of community and friendly atmosphere
6 *See back cover for information regarding data set. 7
Mortgage Light
Mortgages and Moving in Milton Keynes
Mortgages and moving in Milton Keynes:
Making the most of your options
ALEX STOYLES, MORTGAGE LIGHT There is also something to be said for the consider doing so; these are pretty high
It’s definitely no secret that the pandemic ‘coiled spring’ theory. Multiple lockdowns numbers. The comparatively low deposit
(not to mention Brexit uncertainty) has have made us a nation of accidental savers required, based on the size of the share
had a huge impact on the property market – there will be money to spend when purchased instead of the full cost price,
and on buyer behaviour. When a major restrictions ease. is very attractive to first-time buyers
disruption or crisis occurs, we expect the We expect to see momentum maintained struggling to raise a deposit. So too, is the
economy – and our finances - to take a well into the summer, thanks to the support concept of being able to buy a home in
blow. of Government and the Prime Minister’s stages, with the option to purchase extra
roadmap back to normality. But what shares when they can afford to do so. With
What is perhaps more surprising, is that the
happens then, when taxes rise and we economic uncertainty ahead, we think this
story this time has, in many ways, been a
have less money in our pockets? What could be the solution for many.
positive one.
does it mean for the property market in Ultimately, as a brokerage, we believe in
The Government’s stamp duty deadline
Milton Keynes? choice. We will find a bespoke mortgage
has played a major part in keeping market
Our survey tells us that affordability will be solution that suits the individual
momentum going. In autumn 2020,
the biggest deterrent for people in Milton circumstances of each customer.
Rightmove reported its busiest period for
Keynes when it comes to moving home Mortgages are not one size fits all, and
a decade as buyers leapt at the chance to
in 2021 – more so than the effects of the more often than not we can find a deal
make some big savings, whether getting
pandemic, Brexit and job uncertainty. that works, even for buyers with more
onto the ladder for the first time or moving
challenging or complex financial situations
somewhere bigger. We’re pleased to see the property market,
who have struggled to secure a mortgage
The Chancellor’s latest announcement of a especially for first-time buyers, is being
elsewhere.
95% mortgage guarantee scheme will also supported by central Government and we
welcome any move that will help people There are plenty of options out there for
reinforce confidence among lenders and
onto the property ladder. However, we buyers, many have existed for years. It’s
stoke demand from a new pool of buyers
think there is one scheme in particular that just a case of finding the right one.
who thought home ownership, in the short
term at least, was out of reach. is about to become more prominent than
any other: shared ownership.
A lot of people have heard of shared
ownership. According to our survey, 21%
of people have used it, and 36% would
“Multiple
lockdowns have
made us a nation
of accidental
savers.”
“Our survey tells
us that affordability
will be the biggest
deterrent for people
in Milton Keynes.”
8 9
Mortgage Light
Mortgages and Moving in Milton Keynes
Keeping it local in Milton Keynes: It’s been “The most
a surprisingly good year for moving active buyers,
without a doubt, “Green space,
are local families.” the value of having
your own garden
PETE LIGHTFOOT, MANAGING The lockdown has seen some couple start Milton Keynes. And as people return to their or easy access to
DIRECTOR AT ELEVATION a family and others grow in size, it’s not
quite clear if there will be a ‘baby boom’
offices and overseas workers are allowed
to return this will only add more interest.
good outdoor
It’s been a strange 12 months for everyone;
the pandemic has caused major lifestyle as a result of lock down, but it seems The most active buyers, without a doubt, space has
changes and as a result we’ve seen some that some people have used the time,
productively, shall we say, so couples who
are local families, and we expect this
to continue and even increase during
increased.”
significant movement in the property
market, fuelled further by the suspension may have been renting or living in a flat are the next year. They are predominately
of stamp duty. For example, one thing we now looking for two and three-bedroom buying houses which is the area of the
have noticed is an increase in the number houses. market which will benefit most from the
of buyers coming from within Milton As we often see after the Christmas Government’s 95% mortgage guarantee
Keynes, local people upsizing, rather than holidays, families who have been shut in scheme as first-time buyers come to the
people moving into the area - despite the together for an extended period often feel market, they can also use schemes such as
London Exodus that we’ve heard so much the need to move up to something bigger, Help to Buy and shared ownership, to help
about. more rooms equal more personal space, them onto the ladder.
The main driver for movers has been the especially for those of us with teenagers! At Elevation, we have been able to stay
need for more space, or the right space, Green space, the value of having your own open and service our clients’ needs
and it’s for a multitude of reasons: garden or easy access to good outdoor throughout this difficult time, even seeing
The increase in the number of people space has increased dramatically over the prices rise across the year by upwards of
working from home has – no surprises here past year. Having been cooped up indoors 5% and we predict the buoyancy of the
- resulted in the need for a home office for so long (especially over the winter), market will continue into the summer as
space – even when we return to normality, those who only have a balcony or worse, we start to return to normal.
it seems likely that more companies no outdoor space at all are desperately We would encourage anyone considering
will allow flexible working, meaning still searching for homes which offer better a move getting an up-to-date valuation
working from home for part of the week, outside access. and considering taking advantage of this
so dedicated office space rather than So, while we haven’t seen the widely- very active market to achieve the very best
grabbing part of the kitchen table is now a reported flock to the country, the local possible price for their home.
long-term requirement. market here is definitely active with plenty
of people searching for the right home
within their current neighbourhood in
“The main driver
for movers has
been the need for
more space.”
10 11
Mortgage Light
Mortgages and Moving in Milton Keynes
Shared Ownership and Milton Keynes –
like peas in a pod!
DAVE WILLIS As well as the advantage of requiring a Finding shared ownership homes for sale
OPERATIONAL DIRECTOR smaller deposit, the monthly costs of has also become easier for would be
THE SHARED OWNERSHIP SHOP
shared ownership can often be lower than buyers with property portals like
Milton Keynes has always been renowned the cost of renting privately. It then comes Rightmove and Zoopla allowing users to
for its innovation and pioneering spirit and
it has been at the forefront of a number of
with the added benefit that you have a filter searches for shared ownership “Average house
housing initiatives.
leasehold interest and far more security
than you do with an assured shorthold
homes. A number of ‘specialist’ portals
have also entered the marketplace such
prices in Milton Keynes
It is now common practice for new housing tenancy. In the majority of cases shared as sharetobuy.com and keaze.com. currently run at
developments to include a variety of
tenures to create more vibrant and mixed
owners are also able to buy further shares
in their home, right up to 100%.
You will also find shared ownership
homes advertised on the Government
over eight times the
communities. But back in the early 1980s In the current environment, where the supported site helptobuyagent2.org.uk average salary. ”
Milton Keynes Development Corporation longer-term impact of the COVID pandemic and of course our own web site
were one of the first planning authorities to on the housing market is still unknown, sharedownership-shop.co.uk
implement such a policy. In doing so they shared ownership offers a balanced THE SHARED OWNERSHIP SHOP
also embraced the notion of affordable approach to risk, where buyers are not fully The Shared Ownership Shop is a specialist
home ownership, requiring all housing exposed to falls in property values. agency that sells new build shared
developments to include a mix of market
A mature shared ownership housing ownership homes on behalf of housing
sale, shared ownership and rental homes.
market has created a strong infrastructure associations across the region.
Since that time the shared ownership of professional service providers to support Our team has vast experience of the
product has become a mainstay of the those looking for this form of housing. product and our knowledge of the
housing market in Milton Keynes. Estate agents, independent mortgage eligibility criteria enables us to give would
With average house prices in Milton Keynes advisors and solicitors have all become be buyers the most appropriate advice.
currently running at over eight times the experienced and knowledgeable about the We pride ourselves in the way we help
average salary full home ownership is out product and its unique features. buyers navigate through the process of
of reach for many would be buyers. Shared The product has also become much more buying a home, working alongside the likes
ownership allows you to buy a share in a familiar to mortgage lenders and over the of Mortgage Light and local solicitors to
home and pay a rent on the share you do
not buy. It is primarily available through
years the number of lenders willing to grant ensure buyers receive the best financial “Shared
housing associations and has proven to be
shared ownership mortgages has steadily
grown. Today’s market includes a number
and legal support.
ownership has
an ideal product for first time buyers and
those coming out of a partnership break-up
of mortgage products from mainstream become a mainstay
with some equity.
lenders such as Nationwide, The Halifax,
Santander and The Leeds. of the housing
market in Milton
Keynes.”
“Milton Keynes
has always
been renowned
for its innovation
and pioneering
spirit.”
12 13
Mortgage Light
Mortgages and Moving in Milton Keynes
Homebuying in action
in Milton Keynes
“I think I’ll
SHARED OWNERSHIP IN PRACTICE In October 2019, Amy planned to sell her Sam worked with Amy to secure a 40 be using
Amy Barrows (26), a recruitment one-bedroom maisonette and purchase
a two-bedroom house in Cranfield,
per cent share of her new home, quickly
and smoothly. Amy said: “Sam was very
Mortgage Light
consultant, has been a two-time customer
of Mortgage Light in the past five years. Bedfordshire, and still using shared supportive and calming, she wrote down every time
In 2016, the team helped Amy onto the ownership but with a different housing
provider. Amy says: “I had reserved my new
figures for me so I could understand
different mortgage rates and offers as
I move.”
property ladder using Shared Ownership
and four years later, Amy was ready to property in February 2020 and was advised well as insurance in comparison to my
climb onto the next rung – again with to exchange by the end of March – a couple last property. She took the time to explain
Mortgage Light’s help. of days after lockdown came into place. what could be the best outcome, and
My mortgage offer was also due to expire the reasons why we chose what we did.
Amy explains: “I had a couple of setbacks
at the beginning of April. I’ve never been In the long run, it’s saved me thousands
with other brokers when trying to purchase
in a position where I’ve had a home to sell of pounds as the process was so quick.
my first home. I was introduced to Siobhan
while buying a new one, let alone doing so Mortgage Light reacted to the housing
and the team at Mortgage Light who really
in such a strange situation with a global association’s requests with speed and
took the time to work with me and help me
pandemic, so this was a little daunting.” precision, keeping me up-to-date the
understand my options. They explained the
Amy continues: “My Mortgage Light whole way through.”
process, making it crystal clear on what
the next steps were and what I needed to consultant Sam went above and beyond Amy commented: “I think I’ll be using
do in order to qualify for shared ownership. to enable me to meet the exchange date Mortgage Light every time I move. Three
When it came to moving on to my next in March. Sam was great throughout the of my sisters have now used them to
property, I knew exactly who I was going to process, she always made herself available purchase their properties and a friend is
call.” to answer any questions I had – especially currently using them to purchase their
as buying and selling at the same time was second home too. I’ve recommended them
very new to me – she even accommodated to everyone!”
my unusual work hours to keep me up to
date.”
“Mortgage
Light reacted
to the housing
association’s
requests with
speed and
precision.”
14 15Mortgage Light
Mortgages and Moving in Milton Keynes
The market in Milton Keynes: What have
we learned building homes here?
ELOISE LAWSON, SALES MANAGER AT Milton Keynes is a town for home movers. ATTRACTING TALENT “Our buyers
HOUSEBUILDER ABBEY NEW HOMES
We delivered our first development in
Anecdotally, it seems people move home
more regularly in Milton Keynes than
The big businesses here, including brands
such as Santander, Network Rail and
really seem
Milton Keynes in 2001. So, in our 20 years other places; keeping the property market Mercedes, attract talent across a diverse to know
working in the area and being a part of the
Milton Keynes community, what have we
buoyant and maintaining economic
momentum.
range of industries and makes Milton
Keynes a highly desirable destination for
their stuff.”
learned about its property market? A TOWN THAT ACTS AS A CITY buyers. Our development Queen Eleanor
BUYERS WITH KNOW-HOW In many ways, this is a town that functions Place was one of the first in the area with
like a city. Like any city centre development, hi-speed fibre broadband – this led to an
Our buyers really seem to know their
Abbey’s buyers in Milton Keynes are a influx of buyers employed by technology
stuff. Would-be homeowners and
broad group – from first-time buyers to companies and creative agencies, who
movers in Milton Keynes are especially
downsizers, from young professionals to all worked from home (way before the
knowledgeable about buying new-build
retirees. Our developments rarely attract a pandemic led to most of us doing the
homes and the process involved. They’ve
often done their research into the schemes ‘type’, which means the neighbourhoods same). “Generation
and support available to them to buy a new that we – and other housebuilders – create
are well-rounded, inclusive and diverse.
Considering that Milton Keynes is a ‘new
town’, only created in 1967, it is a well-
rent seems to be
home or a share of a new home.
BUYERS WITH PURPOSE Milton Keynes is exceptionally well established, thriving hub for living, working less common than
People in the area have a strong desire
connected and its location north of and leisure with value and opportunity to
be had for its homebuyers.
in major cities or
to get onto the property ladder. Schemes
London means it attracts buyers – and
commuters – from north, south, east and If you’d like to find out more about the
county towns.”
such as Shared Ownership are particularly
west. In our experience, there is a trend for homes Abbey New Homes has available
prevalent here; as a result, young people
Milton Keynes’ buyers to split east or west. in and around the Milton Keynes area, visit
are moving out earlier and buying.
Buyers on the east side tend to use the M1 www.abbeynewhomes.co.uk
Generation rent seems to be less common
to commute, and often include families
than in major cities or county towns.
thanks to the new schools in the area.
People commuting by train or using the A5
will buy to the west.
“In our
experience,
there is a trend
for Milton Keynes’
buyers to split
east or west.”
16 17Mortgage Light
Mortgages and Moving in Milton Keynes
Hopeful homebuyer? Find out more! About Mortgage Light
There is plenty of information available for THE PROS AND CONS OF REMORTGAGING ON Mortgage Light is a Milton Keynes-based to providing services to help families that adding value and going above and
hopeful homebuyers over on the Mortgage SHARED OWNERSHIP MATERNITY LEAVE mortgage and protection brokerage, budget for their next move. We will advise beyond to support our clients has been
Light website. From whether shared Shared Ownership is the most common With thousands and thousands of babies established in 2011. our customers clearly and plainly on their more crucial than ever.
ownership is a good idea to remortgaging affordable purchase option. It’s incredibly born each year in the UK, remortgaging We’re recognised by the largest high options. Attention to detail is vital and we pride
on maternity leave, we have over 26 blogs popular, with 200,000+ Shared Ownership whilst on maternity leave is a common street lenders as New Homes Mortgage We also work with our clients to ensure ourselves on always getting it right first
and a range of guides to help every kind of properties throughout the UK. So, how concern. Remortgaging during this period Specialists and our direct relationships with they have appropriate, affordable time to avoid any delays.
buyer, whether you’re a first-time buyer or does it all work? can sometimes cause confusion and worry. underwriters mean that our customers’ protection in place. Like with our mortgage We pride ourselves on exceptional
seasoned mover. If you’re having a baby, your life and your applications are reviewed based on our services, we’ll cut through the jargon
https://mortgagelight.co.uk/blog/shared- customer service and have a 4.8 Star
Here’s just a few of our most popular ownership-pros-and-cons/ financial situation is likely to have changed recommendations and personal requests, to provide customers with a bespoke rating on Trustpilot. 80% of our business
articles: a lot since your last application. It doesn’t not on a computer-generated algorithm. package based on their personal needs. comes from repeat custom and client
need to be a headache though. We work to help buyers make the We work alongside housebuilders, housing recommendations.
CAN YOU REMORTGAGE WITH
IS SHARED OWNERSHIP https://mortgagelight.co.uk/blog/ most of all of the current homebuying associations and estate agents to support Simply put, we love what we do and so do
HELP TO BUY?
A GOOD IDEA? remortgaging-on-maternity-leave/ schemes, from shared ownership and the their businesses and their clients. our customers.
A mortgage should be seen as something government’s new 95% mortgage scheme,
If you would like to buy a property outright We’re truly a ‘people’ business - our
that you review on a regular basis,
but you can’t raise a mortgage large CAN YOU REMORTGAGE WITH THE relationships with our customers are
particularly at the end of any fixed or
enough to complete the purchase, then SAME LENDER? personable and friendly. We’ve always felt
tracker term, to make sure you are getting
you might consider making use of the the best deal for your circumstances – just Remortgaging allows you to make sure
Shared Ownership scheme. The Shared like you would with your car insurance. This you always have the best mortgage
Ownership scheme is designed to make remains the same for those who have used product available for your current personal
buying a house more accessible for people the government Help to Buy equity loan circumstances. Although you don’t have
on a lower income or who have low scheme to purchase their home. to remortgage, it’s always worth exploring
deposits- but is it a good idea? your options when the opportunity arises
https://mortgagelight.co.uk/blog/can-
https://mortgagelight.co.uk/blog/is- you-remortgage-with-help-to-buy/ to see what deals are out there.
shared-ownership-a-good-idea/ https://mortgagelight.co.uk/blog/can-
you-remortgage-with-the-same-lender/
We want to hear from you too, so if there’s
a topic you’d like covered just send us
an email on info@mortgagelight.co.uk.
We’ve also got a free information centre, so
you can talk to one of our team directly if
you have any mortgage enquiries.
18 19Mortgage Light
Mortgages and Moving in Milton Keynes
DATA SET
The data recorded in this report is a result of a survey carried out by Censuswide on behalf of Mortgage Light
on 254 general respondents in Milton Keynes between 25.02.21 and 02.03.21.
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