With the average house price in England set to rise to £300,000 in the next five years, property affordability set to be an even hotter issue for many first-time buyers, particularly those in the capital where runaway price rises have made property affordable to fewer and fewer people.
However, there are some options out there though so don’t despair.
Key London AllianceInspace Homes has joined forces with Notting Hill Housing Group, Circle Anglia and Barratt Homes, under the joint venture consortium called the Key London Alliance (KLA). The KLA was chosen as one of English Partnerships’ development management partners to deliver the London-Wide Initiative (LWI) aimed at fast-tracking affordable homes for key workers in the capital.
The aim is to provide 2,200 new homes across London. Of these 500 will be allocated for shared ownership or rental accommodation.
Inspacehomes.co.uk
Derwent LivingIn Bletchley, Derwent Living has 11 apartments at Waterside in Stoke Road for sale on a part-buy, part-rent basis. The development, built by Lovell Homes, is close to local amenities and has excellent links to Milton Keynes.
The ten two-bedroom and one one-bedroom apartments will be available through the government’s New Build HomeBuy initiative and will be sold on a part-buy, part-rent basis under Derwent Living’s Easy Living brand.
Easy Living aims to help first-time buyers and people keen to get on the property ladder.
Prices start at £75,000 for a 50 per cent share of a one-bedroom property, with rent and a service
charge payable on the rest.
Derwentliving.com
New Build HomeBuy schemeThe New Build HomeBuy scheme operates through Notting Hill Housing Group. It offers opportunities for first-time buyers to get on to the property ladder through a shared ownership scheme.
Applicants for the scheme must have a salary of £23,000 or more, or for joint applicants the minimum salary is £27,000.
Find out more about the criteria at nottinghillhousing.org.
Government assistanceThe government has launched a new equity loan scheme designed to help the many caught in the renting trap. In this scheme, first-timers are being offered an equity loan of up to 17.5 per cent of the purchase price of a property that which can be used in conjunction with a conventional mortgage.
The new option, part of the government’s multi-million-pound Open Market HomeBuy scheme, allows people to buy a home on the open market and receive an equity loan for up to 17.5 per cent of the purchase price.
There will never be any charge for interest on the equity loan provided, and the loan can be used in conjunction with a conventional mortgage from any qualified lender regulated by the Financial Services Authority (FSA). The loan is repaid when the property is sold, and is calculated at the equivalent percentage of the market value of the property at the time of repayment.
Homebuy.co.uk