The Monthly Costs of Owning a Home

Once you’ve moved into your new home, monthly costs will shape your household budget. Knowing what to expect can help you plan for life after moving in. Whether you’re buying outright or through Shared Ownership, your outgoings will typically include your mortgage, utilities and maintenance. Below, we’ve broken down each of these expenses along with what makes Shared Ownership costs a little different from buying outright.

What are the monthly costs of homeownership?

Mortgage

Your monthly repayment amount will depend on the size of your loan, your interest rate and your mortgage term. Your lender will confirm the exact figure once your application has been approved.

If you’re buying through Shared Ownership, you’ll pay a mortgage on the share value that you buy and subsidised rent on the remaining share.

Additional costs of Shared Ownership

Shared Ownership offers a path to homeownership for many first-time buyers, but it’s worth understanding all the associated costs:

• Rent: You’ll pay a subsidised rent to Hyde each month on the share you don’t yet own. Hyde reviews this annually in line with the terms of your lease.
• Service charge: This contributes towards the maintenance and management of your development, as with any leasehold home. Read more about what our service charge covers in our guide to owning a Hyde home.
• Staircasing (optional): Once you’ve purchased your new home and moved in, you may choose to buy a larger share when the time is right. This is known as staircasing and allows you to work towards full ownership. Find out more in our staircasing guide.

Shared Ownership requires you to pay a mortgage, rent and service charge. However, these combined costs can be the same as or less than renting privately. You’ll also benefit from the security of homeownership.

Lana, a Hyde homeowner at Bluebell Heights, comments:

“When the apartments were first released, we knew we really wanted to go for the 3-bedroom option. This would have been out of our budget if we’d bought outright, but it was more affordable because of Shared Ownership and it took less time to save for the deposit too.”

 

“Our monthly outgoings, which include the rent to Hyde New Homes, our mortgage repayments and service charge, are the same as if we were renting, but we know that the money is going into something that is ours, which has given us a sense of security.”

Utilities and council tax

Energy, water and broadband are all essential for daily living. Your costs will vary depending on your provider, usage and tariff.

Your local authority sets council tax rates based on your property’s band. Check your local council’s website once you know your property’s banding and ensure it is factored into your household budget.

Maintenance and upkeep

As a homeowner, you’re generally responsible for the maintenance and upkeep of your home outside of what is covered by any service charges. The responsibilities and support available may vary depending on whether you buy through Shared Ownership or outright.

These costs can sometimes come as a surprise, so having an emergency savings fund in place can provide a financial cushion for unexpected expenses that may arise as your home gets older. When buying a new-build home, maintenance costs are often lower during the first few years.

Some Shared Ownership leases, including ‘new model’ leases introduced from 2021, may include an annual maintenance contribution from the housing association towards essential repairs during the initial repair period.

Repairs and maintenance support

The initial repair period lasts for 10 years from the start of the lease while you own less than 100% of your home. Depending on your lease, you may be able to claim up to £500 each year towards eligible repair or replacement costs.

You can find full details in your Key Information about the Home and Key Information about Shared Ownership documents.

Having rented nearby for several years while trying to save enough to buy, shared ownership enabled George, who purchased a two-bedroom coach house-style home, to step onto the property ladder years earlier than expected while dramatically reducing monthly outgoings.

Today, their combined mortgage and rent payments are around £330 less each month than private rent. The home’s solar panels save a further £100 a month on electricity bills. This leaves them more than £400 better off each month.

George, a Hyde homeowner at Spring Acres, comments:

“When I worked everything out, it was honestly a no-brainer. I’m paying hundreds of pounds less every month than we were when renting, and instead of paying someone else’s mortgage, I’m investing in my own future.”

At Hyde, we strive to provide well-finished homes that undergo rigorous quality testing, but we recognise that teething issues can still arise. That’s why many of our new-build homes are covered by a defects period for repairs, giving you extra peace of mind as you settle into life as a homeowner.

Take the next step with Hyde New Homes

Understanding your ongoing household expenses, along with the upfront costs of buying, is one of the most important parts of preparing for homeownership.

Your mortgage, Shared Ownership costs (if applicable) and utilities will make up most of your monthly outgoings. Setting money aside for maintenance and unexpected costs can help you feel confident and in control once you’ve moved in.

If you’re still saving for a deposit, our guide on how to save features useful tips to help you get there.

Explore our current developments to find a home that fits your budget or get in touch with our team to discuss which route to homeownership could work for you.