Subsidised and shared ownership schemes
If you do not earn enough to buy a property on the open market you may be able to part-buy a property under a shared ownership scheme.
You need to be earning a regular income in order to be considered for shared ownership. This is because you have to be able to meet your monthly mortgage repayments.
As a guide, applicants for shared ownership in the Vale of White Horse will usually only be considered if your gross earnings are at least £20,000 if you are applying as an individual or total £25,000 if you are applying as a couple.
Occasionally the levels may be lower. If this is the case, it will be indicated in the property details when it is advertised on the Council's Choice Based Lettings website.
It is sometimes possible to qualify for shared ownership even if you do not have a regular earned income, but have substantial savings which can be used to buy a share of a property. An example of someone who could do this may be someone who is splitting up with a partner, selling their existing property and is due to receive substantial equity from this sale.
Here is more information on the types of shared ownership schemes operating in the Vale of White Horse.
The HomeBuy initiative
HomeBuy is a Government-led initiative that enables eligible individuals and families into home ownership by offering assistance in a number of different ways. For many people, this programme will provide the best chance of owning a home in the area in which they want to live and work.
The Council works with Catalyst Housing Group , the Government-appointed Homebuy agent to promote the HomeBuy initiative and all the available options.
There are two core parts to the HomeBuy program:
Shared ownership
- NewBuild HomeBuy- this is also known as "Part-buy/Part-rent". Under this initiative, eligible individuals are able to become home owners by buying a share of a newly built property (from as low as 25 per cent) and pay a subsidised rent on the portion they don't own. Individuals then have the opportunity to increase their share of the property as their financial situation allows by "staircasing". However, this is not compulsory. Catalyst Housing Group can provide you with details of the developments in your area that offer part-buy/part-rent opportunities. From time to time part-buy/part-rent properties will become available as a result of existing owners moving further up the property ladder. These are known as "re-sale" properties.
Equity loan schemes
- HomeBuy Direct- this is a newly launched Government scheme. The buyer buys a new home, on a designated HomeBuy Direct development, with assistance from the Government and the housebuilder in the form of two equal equity loans. The equity Loans would total up to 30 per cent of the purchase price leaving the applicant to raise 70 per cent by way of a mortgage plus a deposit, if available. The equity loans are interest free for the first five years. After that, there is a fee of 1.75 per cent, rising annually by the Retail Price Index (RPI) plus 1 per cent. There is an option to make part or full repayment of the equity loans ("staircasing") after twelve months. The purchaser will be the legal owner with full title to the home and can sell it on the open market without restriction.
Other options
- Social HomeBuy- this is an initiative where housing association and local authority tenants are helped to buy their current home. This is likely to be of interest to tenants who don't qualify for the "Right to Buy" or "Right to Acquire". Interested parties should contact their landlords to see if they are participating in this scheme.
Who is eligible for these schemes?
To be eligible candidates must fit into one of the following criteria and must NOT have a household income in excess of £60,000 per annum:
- First time buyers - this will be subject to qualifying criteria
- Social tenants and those on the housing register - tenants of councils and housing associations and those who are on the Local Authority Housing Register
- Those who have had a major change in circumstances - current or previous home owners who are looking for a new property as a result of a major change in their personal circumstances, for example divorce/separation.
- Other - those who have previously owned a property, but are not owners at the present time may be eligible to apply.
If you meet these requirements what should you do now?
If you are not already on the Vale of White Horse District Council Housing register you need to join the register - for more information on how to do this see our page How to join the Housing Register
You then need to register with Catalyst Housing Group by calling 0845 601 7729 or completing an online application on Catalyst's website .
What happens next?
Once on Catalyst Housing Groups Homebuy Register, you will:
- Receive a letter confirming your eligibility and outlining the level of assistance you are likely to receive
- Be kept up-to-date with the latest Government initiatives
- Receive marketing details of any suitable new affordable housing schemes that are being developed in the District.
- Receive details of re-sales of existing shared ownership properties,
- Have access to any other HomeBuy options promoted by Catalyst and advertised through the HomeBuy website, subject to any eligibility criteria.
For developments where there is high demand, the Council will nominate applicants in priority order where necessary so it is really important that you keep your Housing Register and Catalyst application up to date if there are any changes to your circumstances.
Last reviewed: 01 - 06 - 2011