First Time Buyer Initiatives
Last updated: March 2008
In this article, we take a look at schemes and initiatives, which are mainly based on shared ownership, that have been designed to help first time buyers on to the property ladder.
There are various initiatives aimed at helping first time buyers but each has particular eligibility criteria. Check the criteria for each initiative below and if you meet the requirements, read on.
Shared Ownership
Eligibility: Priority is given to existing public sector tenants or people on local authority or housing association waiting lists.
Shared ownership allows you to part buy and part rent a house. A first time buyer would normally buy a 25% share of a property or more. The other part of the property would be owned by a housing association, which you would pay rent on. The benefit is that you can gradually increase your share of the property over time, paying less rent as you increase your share. Eventually, your share will be 100% and you will need to pay no rent. Unfortunately, their are a limited number of shared ownership properties for sale, which limits choice.
Do-It-Yourself Shared Ownership
Eligibility: Priority is given to existing public sector tenants or people on local authority or housing association waiting lists.
This is like the shared ownership scheme (see above) but it gives you freedom to choose the property, whether it is for sale as shared ownership or not. Unfortunately, this DIY shared ownership is only provided by a few local authorities so check to see if it is available in your area.
Non-government Shared Ownership
Eligibility: You must be a first time buyer. Requirements may vary between companies.
Many companies that sell housing (i.e. new housing) offer their own shared ownership schemes - I recommend that you read their terms and conditions carefully because they are not as regulated as the government schemes.
Homebuy Shared Ownership
Eligibility: Priority is given to existing public sector tenants or people on local authority or housing association waiting lists.
Homebuy shared ownership is where a first time buyer gets a 25% loan from their local housing association to finance the purchase of a house. You only need to pay back the 25% when you sell the house. The benefit of this initiative is that you can choose any property on the market and it is available nationwide.
Key Worker Housing
Eligibility: You must work in London. Generally you must be employed in one of the following professions: NHS employee, teacher, police officer, prison officers, probation officers, MoD personnel, fire and rescue personnel, local authority staff, social workers, environmental health officers, traffic officers. Max household income: £52,500. Must not be less than 5 years away from retirement.
It allows key workers to find a property in London on the open market (less than 90 minutes travelling time from work, up to a value of £210,000) and get an equity loan of up to £50,000 towards the cost.
Resources for First Time Buyer Initiatives
- Local authority contact details - www.direct.gov.uk.
- Information about Homebuy for First Time Buyers - www.housingcorp.gov.uk
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Article by Tim Ballard.
March 2008
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Tim from Suffolk said...
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Thursday, April 10th 2008 06:53 PM
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