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

The UK’s biggest housebuilder has revealed how the cost-of-living crisis is changing the criteria buyers are setting for their first or next home, with house hunters looking to rent out rooms or downsize to save cash.

The Tackling the Cost of Living Crisis – 2023 Report by Barratt Developments PLC – which includes Barratt Homes and David Wilson Homes, found that 37% of prospective buyers are considering buying and renting out a room for additional income.

The research also showed a trend towards co-ownership as consumers struggle to buy solo. Some 43% of those surveyed are considering buying with a friend or family member and half of those surveyed are considering purchasing an apartment instead of a house to save money.

As the cooler autumn weather means that energy bills begin to bite again, some 56% of consumers said that they would buy a new build home to save money on gas and electricity.

Around 54% said that the lack of energy security is a concern, while 57% said that they are worrying about rising interest rates.

Richard Lawon, Sales Director for Barratt Developments South Wales, said: “The cost-of-living crisis is changing the way some people are buying homes. More buyers are looking to purchase homes and then rent out a room to gain additional income. Others are looking to purchase with friends and family, so they can overcome the hurdle of higher interest rates.

“To help buyers overcome the more challenging housing market, we have launched a generous round of incentives, including our Key Worker Scheme, which provides a deposit for a wide range of buyers from teachers to those in the police, postal service, council and NHS workers.

“We also have the Movemaker scheme, which takes away the stress of selling your existing house to move into an energy-efficient new home. All of our incentives offer support for buyers to help overcome the challenges that rising interest rates have caused.”

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.