Home buyers in Scotland downsizing and renting out rooms to save cash

HOME buyers in Scotland are downsizing and renting out rooms in their homes in order to save cash amidst the cost-of-living crisis.

A 2023 report by the UK’s biggest housebuilder, Barrats Developments PLC, has revealed that 31% of prospective buyers in Scotland are considering buying and renting out a room for additional income.

Barrats’ research showed a trend towards shared homeownership as consumers struggle to buy solo.

Additionally, the report found that of those already on the property ladder, 50% would consider downsizing to a cheaper home to save money on bills.

Interior example of a Barrat apartment
Colony apartment at Barratt Homes, The Strand development: Portobello, Edinburgh

The ‘Tackling the Cost of Living Crisis’ report highlighted how the squeeze in peoples finances is changing the criteria set by home-buyers in Scotland, with clients sharpening their focus on long term income.

To help ease the financial burden of purchasing a new home, Barratt Developments recently announced a deposit or mortgage contribution scheme, offering homebuyers up to £30,000 towards their deposit or mortgage repayments.

According to the House Builders Federation, Barrat homes are up to 64% more energy efficient than others, potentially saving new buyers money on household bills.  

Doug McLeod, regional managing director for Barratt Developments Scotland, said: “There’s no doubt that the cost-of-living crisis has changed the way people are buying homes.

“Worries around rising interest rates, inflation and energy bills have seen people consider new ways to generate income, including renting out a spare room.

“Despite this, our research shows that people are still confident in the UK housing market.

“With this in mind, we have launched a variety of schemes to support those looking to invest in property, including mortgage contributions and deposit help for first time buyers.”