Affordable home ownership is an option for people who can't afford to rent or buy a property on the open market' - it's also known as 'low cost home ownership'.
Affordable home owners sometimes choose to sell property bought through the schemes. Find out more about the ‘resale’ of affordable homes.
Discounted for Sale properties
These properties are normally available on new housing developments or as 'resales'.
Under the Discounted for Sale Scheme:
- the purchaser buys 100% of a property
- the price is lower than on the open market
- the sale is administered by a Registered Provider (also known as a housing association)
- the buyer obtains a mortgage for the discounted price
- the buyer does not pay rent on the remainder
Typical discounted for sale property prices range from £58,000 for a 1-bed flat to £103,000 for a 4-bed house, but prices can vary for individual sites.
Shared Ownership properties
Shared ownership properties are jointly owned by a purchaser and a Registered Provider.
There are various Shared Ownership schemes available.
Under the Shared Ownership Scheme the purchaser:
- buys a share of a property (usually between 25% and 75%)
- the purchaser pays rent on the remaining share
- makes two monthly payments, one for the mortgage and one for the rent
- may increase or decrease their share in the property (known as 'staircasing'), until it's purchased outright
In most cases the combined rent and mortgage cost is less than taking a mortgage out on the entire property.
There are instances when it's not possible to purchase 100% of a Shared Ownership property, for example if the property has been built on a 'designated rural exception site'.
Help to Buy
Help to Buy is a government scheme which helps buyers to purchase a property, funded by a mortgage. A mortgage is taken out with monthly payments in the normal way. A deposit is still required.
Find out more on the Help to Buy website.