The prospect of rising house prices will bring a ray of sunshine to existing homeowners but this potentially means that first time buyers and low income workers who are already scrimping and saving for an average mortgage deposit of 20% will have to save an even larger sum.

For example:
If a person bought a £200,000 home, they would need to accumulate £40,000 (20% deposit)
If house prices rise by 6% by the end of the year it will mean that the house value will increase to £212,000 and the 20% deposit will increase to £42,400.

For prospective new homebuyers who are finding it difficult to raise a large deposit there is an alternative to be considered - Part buy part rent is available for a wide range of people whose household income is under £60,000. Although the average percentage deposit of 20% is still the same, it is based on the share purchased.

For example:
If a person bought a 25% share of a £200,000 home, they would only need to secure a £50,000 mortgage.
A 20% deposit of a £50,000 mortgage equates to £10,000.
This is a quarter of the deposit that a person would need to find when buying a property outright and is a real option for getting on the housing ladder.

If you are looking for affordable housing, go to www.smartshare.co.uk - the UK’s number one website for affordable housing.