Housing Association tenants on the lowest incomes are being given the chance to get onto the property ladder thanks to a new version of the shared ownership scheme.
The Government has announced changes to the scheme which should make it easier for first-time buyers to get their own homes.
Housing Secretary Robert Jenrick has said that first-time buyers will be allowed to buy a stake of 10 per cent, which will then be upped in 1 pc increments.
Under current rules, Housing Association tenants renting a home worth £200,000 can't buy a share of that property.
But with the new Right To Shared Ownership scheme, tenants will be able to buy an initial 10 pc stake worth £20,000, while paying subsidised rent on the remaining 90 pc of the property.
Under the new scheme tenants will be able to make up the 10 pc stake with a £2,000 deposit and an £18,000 mortgage.
Chief Executive of NAEA Propertymark, Mark Hayward, said: “Now that the measures on shared ownership have been confirmed, thousands of consumers will welcome the opportunity to increase their share of ownership more easily and to simplify the process by which they can sell their homes.
"Whilst we support introducing creative ways for consumers to get on to the housing ladder, the Government must be careful of the unintended consequences that any changes to Help to Buy could have on the rest of the market.
"In many cases these are not properties that feed into the general market place but into a cul de sac with no assistance to upward activity.”
Am I eligible for shared ownership?
You can buy a home through shared ownership if your household earns £80,000 a year or less (or £90,000 a year or less in London) and any of the following apply:
- you’re a first-time buyer
- you used to own a home, but can’t afford to buy one now
- you’re an existing shared owner
For more information on shared ownership, head to the official government website.
