Still Lots Of Ways To Purchase a New Home

Almost everyone in the UK aspires to owning their own home. Whether it’s a one-bedroom apartment in London or a five-bed detached property in the suburbs of Manchester, we crave the security and pride that comes with ownership. However, it is becoming harder and harder for people to get onto the property ladder.

According to a report by the Chartered Institute of Housing, the number of people priced out of buying and forced into renting is likely to grow even despite 100,000 new homes being built in 2010. The Institute states that there is an increasing amount of households whose income is between £12,000 and £25,000, therefore too high to qualify for social housing, but too low to get a decent mortgage.

However, if you are desperate to be a homeowner there are schemes out there to help you and house builders that do cater to your needs. The government’s Shared Ownership scheme, whereby you buy a share of your property and pay rent on the remaining share, is available to households that earn less than £60,000 a year and is proving to be quite popular. You pay between 25% and 75% of the home’s value with the housing association paying the rest. You then have to pay up to 3% of the share’s value as rent.

HomeBuy Direct is a similar scheme available to the same kinds of households. You must pay 70% of the cost of the new home with the remaining cost paid by the government and the house builder through an equity loan. The loan rises and falls with the value of your home.

There are an increasing number of new homes for sale that quality for both of these schemes or similar initiatives; one is from Kier Homes. In Peterborough it’s Connect 21 scheme is helping first-time buyers break onto the property market.

The project allows first-time buyers to pay 75% of the value of their new home now, with the remaining 25% being paid back within 10 years. However, the purchaser will own 100% of the property and the first-five years of repayments are completely interest free.

As the number of new build homes increases throughout 2010, more financial assistance should become available to first-time buyers. But also there will be greater choice and less pressure on house prices making them more affordable.

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About the author

Steven Hamilton, provides advice and tips for those looking to buy new homes in the UK. If you are looking to purchase a new home, then hopefully my advice can help!

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