Millions of people are struggling to get on the UK property ladder. Thirty-seven percent of UK families are now renting from a private landlord and the age of first-time buyers is rising, with 33 years now being the age most people purchase their first home, up from 31 years ten years ago.
London dwellers are particularly hard-hit, with prices in the capital escalating far above average wage increases.
However, despite these rather gloomy statistics, there are government schemes designed to assist first-time buyers buy their own little piece of England.
The most popular affordable home ownership schemes are:
If you have a 5% deposit for your first house, the government will lend you up to 20% (40% in London); you would then require a mortgage to fund the additional 75% of the house price. This is designed to help those struggling to pay high market rents and save for a deposit at the same time.
The home you purchase must be a new-build and be priced at no more than £600,000 (£300,000 in Wales).
With a Help-to-Buy ISA, the government will top up your savings up to £3,000, that you do not need to repay.
To be eligible for this scheme, the home you plan to purchase must be valued at no more than £250,000 (£450,000 in London).
If you are renting a home from a housing association, you can purchase a share in your home and pay rent on the remainder.
For example, you could buy 50% of your home and then pay rent to the housing association on the other 50%.
To be eligible, your household must earn below £80,000 per annum (£90,000 in London). You do not have to be a first-time buyer, you may have owned a home previously but cannot afford to buy one outright currently.
It is important to note that shared ownership homes are always leasehold properties.
As you can afford it, you can buy more shares in your property, this is commonly known as ‘staircasing’. If you decide to sell, the housing association has the ‘right of first refusal’ on the property.
To obtain legal advice regarding affordable home ownership schemes you can find a conveyancing solicitor in your area buy searching through Solicitors Guru today.