Shared Ownership Schemes for All

If you are looking to invest in property, then the chances are that you are in quite a quandary at the moment with falling house prices and fluctuating mortgage rates hitting the headlines up and down the country.

Falling house prices are a step in the right direction for those looking to get onto the property ladder now, but with the mortgage market tightening house buyers are being asked for hefty deposits to secure their dreams of owning. For many house buyers, especially first time buyers, this is not an available option.

In addition, we may all be experiencing the beginning of a housing market crash, but prices are still too high for most first time buyers.

With this in mind, the government has opened up their shared ownership scheme to the masses of first time buyers desperate to secure a foot hold.

Originally the shared ownership scheme was only open to a select group of buyers who fell into the key worker category, but the Government has just announced that they are making the HomeBuy scheme available to all first time buyers that have a household income of less than £60,000.

The HomeBuy scheme or shared ownership allows a buyer to purchase 25% -75% of a property and then rent the remaining share from the housing association. The ‘part rent, part buy’ scheme is halfway between home ownership and renting and a definite option for those who want to get onto the property ladder, but haven’t got the cash to do so.

Anyone entering into a shared ownership scheme is using Government money and therefore the rent has to be seen to be ‘affordable’ and so the amount payable in rent and mortgage is worked out to be manageable for all parties, with the option of purchasing more percentages in the property as time goes on.

The Government has pledged to spend £200m on brand new housing – some of which, will of course be sold to first time buyers through the New Build HomeBuy shared ownership schemes.