The Social HomeBuy Scheme for Cash-Strapped First-Time Buyers

 

NOTE This scheme was a Labour Government policy which has been replaced by the Conservative Government’s Help to Buy scheme. We are leaving the information below for the historical record

The Social HomeBuy scheme is one of several Government-backed initiatives designed to help low-paid first-time buyers climb onto the housing ladder.

• How does it work?

This is a shared ownership scheme, which allows tenants to buy from 25 per cent upwards of their current house or flat, at a discounted price.

You continue to pay rent on the remaining portion of the property.

• How do I qualify?

If you’re a council or housing association tenant, and your landlord has signed up for the Social HomeBuy scheme, you may be eligible.

• Can I increase my share?

You can increase your ownership share later as your finances allow.

However, the discount applies only to the first chunk of the property you purchase, so it’s best to buy as much as you can afford at the outset.

Or, if you can drum up the cash, you can buy the whole thing in one go.

• What if I want to sell?

When you’re ready to move on, your landlord can buy the property back at market value or nominate another purchaser.

• What else do I need to know?

If you sell within five years, you will have to repay the discount out of your share of the sale proceeds.

Keep the property for over five years and you don’t have to repay it.

• How do I apply?

For more information, contact your local HomeBuy agent.

To find out about other Government HomeBuy schemes, go to