In a nutshell, money. Using traditional lenders, first time buyers will always have the problem of raising enough capital to own a house.
It’s possibly never been harder to get on the property ladder. Escalating house prices, stagnant wages and more stringent rules regarding the approval of mortgages has priced out an entire generation in and outside of the UK.
Mortgage lenders require certain stipulations which include:
- Full time employment
- A flawless credit history
- Wages above a certain bracket
If you are self-employed, have dependents or have experienced financial problems in the past, you will struggle to obtain approval. Even paying for your child’s nursery fees can make the difference between being granted a mortgage or not. Even if you do find a mortgage, it may require a larger than usual deposit and/or higher rates.
When owning a property is out of reach for so many people, the rental market goes up. With more demand for rental accommodation, private landlords can command high prices. People will often end up spending more on renting per month than they would with a mortgage – which further increases their inability to own a property, as their saving capabilities are reduced.
Only a few decades ago, a family could easily own a home and live off one income. Nowadays, even with a dual income, families and young people are facing a very uncertain future.
On top of this, successive governments since the 1970s have failed to build affordable homes. While there are schemes available to first time buyers, such as Help to Buy, Shared Ownership and Equity Loans, these do not provide the solution for all first time buyers – they only help some aspects of affordability.
It is a system that doesn’t work for our times. For a large percentage of the UK population, owning a house in the current system will always be an impossibility.
But what if we looked at owning a home in a completely different way? If we did away with traditional lending and the chokehold that this has on the property market?
WHAT IF WE DEMOCRATISED THE WHOLE PROCESS?
HiP works on the belief that everyone should be entitled to own their own home, and with us, it’s completely 100% possible. With HiP, you don’t need gargantuan deposits, Grade A credit scores or a six figure salary.
You can do this with the help of other people. HiP allows you to get the keys to the property of your choice with the help of our investors. These are people who have some extra cash that they want to invest. And what better way than to put it into property?
You find the house you want to live in, you come up with the money you can afford, and the rest is met by our pool of investors who want to invest in bricks and mortar. You, as the householder, remain completely anonymous, and free to live in your home for as long as you want, with the agreement in place that if you do choose to sell your home, you split the profit made with the investor(s) accordingly.
The way ahead in the 21st century is people power. Home owning shouldn’t be a privilege reserved for people over a certain earnings bracket. HiP’s way allows everyone to own their home – democratising the whole market and helping those who were once priced out get on to the ladder.