New support intended to help first time buyers struggling to get a foot on the property ladder has just been announced by Housing Minister Caroline Flint.
From today, all first time buyers with a household income of £60,000 a year or less will have the opportunity to apply to buy a share of a home, under a major expansion of the Government's HomeBuy programme. Currently, the scheme is open only to key workers like nurses and teaches and other buyers identified as a priority regionally.
The new rules mean that all first time buyers will have the option to apply for the HomeBuy programme, for the first time. This allows buyers to purchase a share from 25% of a property or to boost their purchasing power by up to 50% with a shared equity mortgage.
HomeBuy programme
For example a household with an income of £32,000 could afford a house of £200,000, paying £760 each month - as opposed to £1,350 without the scheme. Other measures being announced today to support first time buyers include:
• The Housing Corporation is to allocate up to £200m of its resources to buy new properties on the open market, either to be made available for first time buyers to purchase through the HomeBuy scheme or for social rent.
• Expand the Open Market HomeBuy scheme so more households will be able to take advantage of a shared equity loan, to buy a new build property on the open market. Buyers will be able to identify the home they wish to purchase from a house builder and then apply for support.
Housing Minister Caroline Flint: "Most families aspire to get onto the housing ladder, but are being priced out of the market. We want to give them the support to help them buy an affordable home. The long term solution to the challenge of affordability is to build more homes. But in the meantime, we are doing more by giving more first time buyers the chance to boost their purchasing power and put their dream home within reach."
Under the HomeBuy programme, first time buyers have the opportunity to take advantage of either a shared equity or shared ownership product to help them buy their home.
To find out more about the new products available under this scheme, visit: www.communities.gov.uk/housing/buyingselling/ownershipschemes/homebuy/
