Supplementary memorandum by the Department
for Communities and Local Government
DELIVERY OF AFFORDABLE HOUSING—DETAILS
ON SCHEMES AND KEY FACTS
The Government offers a variety of HomeBuy schemes
designed to help social tenants, first time buyers and key workers
get a foothold on the property ladder.
These schemes are designed to work together
as a package—the different options offer choices in the
type of homes available, and help to meet the needs of a range
of households with different incomes, and in changing market conditions.
The three HomeBuy products are:
— Social HomeBuy enables tenants of
local authorities and housing associations to buy a share in their
current home at a discount.
— New Build HomeBuy enables people
to buy a share of a newly built property, including homes built
on public sector land through the First-Time Buyers initiative.
— Open Market HomeBuy enables people
to buy a property on the open market with the help of equity loans.
Since 1997 we have helped:
— 77,000 households into home ownership
through shared equity;
— 22,956 households have taken up Open
Market HomeBuy;
— provided 51,920 homes through New
Build HomeBuy (and its predecessor schemes); and
— 47 households have purchased their
home through the new Social HomeBuy scheme, mainly through the
early pilots launched last year.
These totals include 24,833 key workers.
SOCIAL HOMEBUY
The Committee asked for details of the proportions
of equity purchased under Social HomeBuy so far.
The majority of the early Social HomeBuy sales
have been at 100% (i.e 38 out of a total of 48 up until March
2007).
Purchasers are encouraged to maximise the share they
can afford and sustain. Other purchasers (10) have bought shares
ranging from 25% to 75%.
|
| 80% | - 100% share
|
| 4% | - 75% share
|
| 2% | - 65% share
|
| 2% | - 60% share
|
| 8% | - 50% share
|
| 2% | - 40% share
|
| 2% | - 25% share
|
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