Extension of ‘DIY’ shared home ownership scheme for first-time buyers:-Ex-service families could benefit
Even more first-time buyers will be given a leg up the housing ladder, thanks to a proposed extension of their ‘do-it-yourself’ shared ownership scheme by the Royal Borough and Housing Solutions.
The scheme allows first-time buyers to find a suitable affordable property on the open market. Then, if they are accepted into the scheme, Housing Solutions will buy the house or flat and sell a share of it to the would-be home-owners who pay rent for the part they don’t own.
With 16 successful shared ownerships now in operation and more being assessed, the council is proposing to invest a further £876,000 of Section 106 developers’ contributions – with match funding from Housing Solutions – to extend the scheme to even more first-time buyers.
Discussions are also under way with the Haig Fund to open up the scheme to ex-servicemen and women who, having served their country in often dangerous conflict zones around the world, need a helping hand toward home ownership.
Cllr David Coppinger, cabinet member for adult services and health, will present the proposal to cabinet on Thursday 25 April. He said: “Last year the council invested £960,000 of Section 106 funds to get the scheme up and running with generous match funding from Housing Solutions.
“After a somewhat slow start because of the difficult economic climate, we are now seeing an encouraging uptake by local people who want to get a stake in property ownership – and we are now planning to extend the offer to even more people, including ex-service personnel who are struggling to buy on the open market.
“Our aim is to widen the availability of options for low cost home ownerships and we are delighted to be partnering Housing Solutions to offer thus significant helping hand to first time buyers across the borough. It is also a way of stimulating the local property market and expand the capacity to meet local housing needs.”
John Petitt, chief executive of Housing Solutions said: “Through this scheme we have been able to help local families fulfil their dreams of owning their own home. So we are delighted that this additional funding will help us to meet the housing needs of more people.”
The shared ownership scheme works by Housing Solutions selling between 35% and 75% of suitable properties to the new home-buyers who then have the opportunity of increasing their share to full ownership. If homes are sold in the interim the money invested is returned to the housing association from the sale price and then the money made available again for more potential buyers.