THOSE dismayed at the prospect of property prices relentlessly driving up again should be cheered by the news that the government is giving é4bn to help them take the first step onto the ladder.
The money is being distributed through the Housing Corporation to create 35,000 affordable homes for sale over the next two year with Manchester being allocated just over é3m and Lancashire é2.4m
They are made affordable through shared ownership where people buy as much of a property as they can afford then rent the rest, only now it is known as HomeBuy and each of the dozens of different schemes are being co-ordinated through a single agent in an effort to make it easier for people to find a property they want.
Matthew Harrison is deputy chief executive for the Manchester based Great Places Housing Group, which is the Agent for Manchester and Lancashire.
He said: "We are now a one stop shop for low cost home ownership across those counties. Our aim is to find people the right property in the right place and we have all the details of the different options available.
Critical
"It is filling a critical gap in the market. We have seen no let-up in demand over the last 12-18 months and our hot-line is constantly busy which proves the demand is there.é
The basic idea is that people buy only as much of a property as they can afford with the government initially stumping up the rest and then allowing them to staircase up and increase their share as their income and equity in the property increase.
And the variety of different homes on offer has changed dramatically since the early days of shared ownership where rather bleak blocks could easily be identified and they failed to grow in value to the same extent.
Today you buy a share of properties in high profile developments like Countrysideés South at Didsbury Point off the Parkway, Urban Splashés Moho scheme in Castlefield, at Lyme View in Handforth Village, Sale town centre and later this summer units at the ultra cool Chips Building in New Islington will be made available.
Harrison said: éWe now work with a whole range of different developers who build a whole range of different housing and we also commission our own new schemes like the distinctive new housing being built in New Islington. Sometimes developers come to us but more frequently we are in at the beginning helping to drive the sort of housing being built.
éWe are also bidding with the developer LPC to be involved with the redevelopment of the Gorton Monastery site which is a tremendous opportunity.é
Key locations
The overall thrust is that shared ownership is no longer the dodgy units at the back of the site but the chance to buy in prestigious schemes in key locations.
Harrison added: éAs the Agent we will co-ordinate what all the different housing associations are doing é and there are now dozens of good companies é and basically do the hard work so people only have to register with us and have one place to look for all the information they need.
éWe will have two years of stability working with this scheme and we hope during that time to help around 200 people and helping first time buyers will have a wider impact on the property market.é
There are basically three different HomeBuy options.
Open Market HomeBuy - If you can raise a mortgage for around 75% of the property you want on the open market then HomeBuy will help you fund the rest. Up until the rules change in October you will not have to pay rent on the loan but after that you will. There are also restrictions an eligibility with key workers, social housing tenants and those in priority housing need getting priority. There are also some restrictions on the areas where you can buy.
New Build HomeBuy é New built apartments or houses where you purchase between 25% - 75% of the price of the property on a mortgage and pay rent on the share you donét own. After 12 months you can increase your share and when you own 100% can sell the property outright on the open market benefiting from any increase in your equity. The rent you have to pay caries considerably from scheme to scheme.
Social HomeBuy é Helps existing affordable housing tenants to buy their own properties either outright or a share with the benefit of a discount. The maximum discount varies between é9,000 and é16,000 depending on location.
For a case study, please select the link below.
What do you think of Shared Ownership Schemes? Have your say.
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SHARED OWNERSHIP IS NOTHING TO CHEER ABOUT!Shared ownership is a brilliantly creative idea for everyone except the buyer. There is no shortage of housing if one looks around - just a shortage of affordable housing. In order to maintain the falsely inflated prices of some very modest homes, the government has stepped in to support the developers and estate agents who are riding high and, oh by the way, are taking the ride on your tax money with the government's wholehearted approval. First time buyers just have to be prepared to support it, paying mortage and rent simultaneously - yes this is brilliant. I wish I could get some of it. The USA has gone even further - we can now secure fifty year mortgages here in order to reduce monthly payments on homes that estate agents tell us are worth it, because one poorly educated consumer started the ball rolling by falling for it. There is an immediate need for the education of poorly informed, propsective homebuyers. Never offer the full asking price of a home that's for sale - investors don't. After your offer is accepted, ask the seller to put up half of the survey fee (to be held by the agent or your solicitor)which is fully refundable to them as long as they don't pull out after they've agreed to accept your offer. Never tell sellers how much you like their homes. Keep all things positive to yourself but, by all means, point out the cracks in the wall and damp patches. You should pay less for a house on a busy street or thoroughfare, not anywhere near the price for a similar house on a quieter street. If you can't park at least one car outside your intended purchase, reduce your offer further. Stop paying over the odds for dumps. You deserve more for your hard earned money and should hold onto it until the right thing comes along. Above all, take your time and choose carefully. It's a big step and will be the major output for years to come. If you have nothing left to play with, you won't be able to afford improvements, let alone an occasional holiday. Question your mortgage lender and solicitor about all the financial details, especially the amortization schedule. This schedule shows you exactly how much you will have paid for your home over the life of the mortgage, if you see it to the end. It's quite a sobering figure. Make sure you have a mortgage that has no penalties for early pay off (just in case you win the lottery!). Avoid shared ownership.