Affordable home ownership

If you are considering buying your own home, but cannot afford to do so outright, then affordable home ownership may be an option for you. The Government has introduced a scheme called HomeBuy which helps people take the first step onto the property ladder. HomeBuy is a name the Government has given to a suite of housing options available to people who wish to purchase a home but cannot do so without financial assistance, and those who wish to rent but cannot afford the cost of high market rents.

South West Homes Homebuy

South West Homes is the regional HomeBuy agent for the South West who maintain a register of all the Housing Association properties in the district.

South West Homes works with Registered Social Landlord's to advertise their properties. They provide a "one stop shop" advice service about Affordable Home Ownership schemes.

One option is New Build HomeBuy which enables people to purchase 25 -75% of the property and pay a subsidised rent on the remaining share. This is a type of Shared Ownership.

Another option is HomeBuy Direct which offers equity loans towards the purchase of a new build home on selected developments. HomeBuy Direct works with the applicant buying a minimum of 70% of the market value of a property. An equity loan of up to 30% is provided to assist your purchase. There are no payments on the loan for the first five years. After five years there is a fee of 1.75%, which increases annually in line with inflation.

If you cannot afford to purchase a property or are finding it hard to get a deposit for a property, South West Homes have a Rent to Homebuy Scheme allowing you to rent a property and purchase it at a later date.

For more properties for sale in the Forest of Dean and other districts or to find out more about Homebuy, view the South West Homes website or call 0300 100 0021. Lines are open from 9am to 5pm Monday to Friday.

Discounted Sale Homes

Other schemes provided by local developers include Discounted Sale Homes where properties are sold at a reduced percentage of the market value with the reduction being passed on through the re-sale of the property.

Developers are encouraged to advertise properties through South West Homes, but may also hold an open day once the properties are completed so it is worthwhile keeping in touch with these organisations to hear of any events locally. Due to being built privately, Discounted Sale Homes are often advertised in local newspapers and on a company’s website.

Am I eligible to buy a home using HomeBuy?

The government has set conditions regarding who is eligible to purchase a Homebuy property. The requirements vary per development and may include:

· People unable to afford to purchase a home in the local area;
· Households on low income wanting to get onto the property ladder;
· Applicants can demonstrate they have sufficient savings or earnings to pay, if required, a deposit,legal fees, stamp duty and other costs of moving.
· Households are able to sustain home ownership in the longer term.

Can I afford it?

When purchasing a property, there are many items to consider as well as the mortgage. Buying a property is expensive and it is suggested that as a minimum households will require approximately £2,500 to cover the one-off costs of buying a property, although this could increase greatly. If you think you can afford a mortgage we suggest you seek advice from an independent mortgage advisor.
Please see is home ownership for me.