News - Shared Ownership/HomeBuy Scheme

The government's 'Shared Homeownership' scheme aims to help people in England who cannot afford to buy their own home. Those eligible range from council or housing association tenants, keyworkers in London, the South East and the East of England, first-time buyers or those with priority housing needs. This recently introduced scheme has different divisions: New Build HomeBuy, Open Market HomeBuy, Social HomeBuy and First Time Buyers Initiative.

New Build HomeBuy

This scheme enables you to part buy and part rent your home in association with a housing association. The property can be either a flat or a house. You can buy as little as 25%, 50% or up to 75% share in your home and pay an affordable rent for the remaining share of the property.
When you can afford to it is possible to buy additional shares (known as 'staircasing' ) until you own 100% of your home. If you subsequently wish to move you can then sell the shares or the property if you own it fully.You would then receive any equity which has built up on the share or house. If you purchase the home as a key worker and then change your job you will have five years to buy the property outright or to sell it.

Open Market HomeBuy

This scheme enables eligible persons to get a government equity loan to run in conjunction with your mortgage. No interest is charged on the equity loan for the first five years. Your repayment will be linked to the value of your home as it stands when you sell it, and there may be a redemption fee.

Social HomeBuy

This allows secure or assured tenants of participating housing associations or councils to purchase their homes on a shared ownership basis. The minimum share is 25%. A discount is payable at the time of the initial purchase of shares, so it makes sense to buy as much as you can afford at that time. The discount is repayable if the home is sold within five years.

First Time Buyers Initiative

This is another shared equity scheme that helps first-time buyers to get on the property ladder. You need to be able to buy at least half of the property and English Partnerships - the national regeneration agency - purchases the other half. After three years you are then required to pay a fee which is based on a percentage of the equity of the half you do not own. This scheme allocates 50% of the homes for key public sector workers and 50% to those with priority housing needs.

To join the Shared Ownership Scheme you will need to contact a HomeBuy Agent - usually part of a housing association. They will then assess your eligibility and give you full details of any local schemes.

The National Affordable Homes Agency

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