Accessing Affordable Home Ownership Schemes

Shared ownership and rent to buy schemes are part of affordable home ownership. As of 1 April 2023, there is a new service for customers to check their eligibility for the schemes (and get an immediate answer) as well as find an affordable home using an online search directory. This new service ensures customers are able to access clear information on schemes and will reduce the duplication of information that had previously been required.

The search directory will provide customers with all information required to make searching for a home easier. It will include the company name, web address, telephone number, email and postal address, schemes offered and local authority areas where they currently develop affordable homes.

It may also be beneficial to register with local estate agents who may be involved in the marketing of affordable homes, as well as regularly checking websites such as Rightmove.

You will be able to buy an initial share of between 10% and 75% of a new build shared ownership home, subject to eligibility and affordability criteria (though most registered providers set their ‘entry’ level at 35%). You will then pay a rent on the remaining value that will be owned by the registered provider. This will be lower than a mortgage for the whole property and will enable you to save up so that in time you can purchase a larger share of the property. Usually this is 10% at a time though increments can be as little as 1% now, though admin fees for the legal services may mean that is prohibitive for you. This whole process is known as ‘staircasing’. You will need to speak to a financial advisor (bank, building society, independent broker) regarding your ability to gain a mortgage. If you want to look at your credit score for yourself there are sites like Experian, Clear Score etc. who can help you with that.

First Homes

First Homes is a government scheme designed to enable people to buy a home at 70% of the open market value but without having to pay rent on the remainder. When you sell the property you sell it at 70% to the next buyer – and the home stays as an affordable home in perpetuity. There are not currently any First Homes in the borough but it will grow and become a form of home ownership in the coming months and years. More information will be provided as homes become available. 

If you have any further questions that are not answered in the links provided above, please contact us via email at housingdevteam@ashford.gov.uk.