Government Backed Ownership Schemes

Whether you are a council or housing association tenant, key worker or first-time buyer there is a range of schemes available to help you get your foot on the property ladder. This Fact file Highlights what schemes may be available to you.

WHO CAN APPLY?

If you cannot afford to buy a home there are many different ways you can get help. Each individual scheme will have its own criteria - so check the details of each scheme with your landlord or the relevant 'Home Buy Agent'. You may be eligible if you are:

• a council tenant
• a housing association tenant
• a key worker (e.g. teacher or police officer)
• a first-time buyer with a household income of less than £60,000 per year and who can't afford to buy a property on the open market without help

WHAT TYPES OF SCHEMES ARE AVAILABLE?

Discount schemes

These are offered by social landlords (council and housing association tenants) to give their tenants the chance to buy their rented home at a discount, which is calculated according to where you live.

The three main discount schemes are 'Right to Buy' for council tenants, 'Right to Acquire' for housing associations tenants and the 'Social Home Buy' scheme.

Cash Incentive Schemes

Your council may also run a cash incentive scheme where they offer you money to move to a smaller property, so that they can use the space to house other people on their waiting lists. The details of the scheme vary from council to council, and not all councils offer the scheme. To find out more, contact the housing department of your local council.

OTHER SCHEMES THAT ARE AVAILABLE

Home Buy

The Home Buy schemes enable social tenants, key workers and first time buyers who are unable to buy a home on the open market without assistance to buy a share of a home.

There are three Home Buy schemes based on 'equity loans' which is where the lender shares in any rise (and sometimes any fall) in the value of the property over the course of the loan. These are:

• Social Home Buy enables tenants of local authorities and housing associations to buy a share in their current home at a discount.
• 'New Build Home Buy' enables people to buy a share of a newly built property paying a rent on the remainder (this includes the First Time Buyers Initiative which uses public sector land).
• 'Open Market Home Buy' enables people to buy a property on the open market with the help of an equity loan.

All first time buyers with a household income of less than £60,000 per year, who are unable to buy a home on the open market, can apply Interested applicants need to contact the relevant Home Buy agent for their area for further information. Tenants interested in the Social Home Buy option are advised to contact their landlord to find out if the scheme is available to them.

Rent to Home Buy

A new pilot 'Rent to Home Buy' scheme has also been introduced. You may be able to rent a newly built property for a fixed length of time if you cannot get an affordable mortgage for any of the other Home Buy schemes. As with other Home Buy schemes, you may be eligible for this pilot if you are a first time buyer with a household income of less than £60, 00 a year. The Housing Corporation, a government agency, is running this scheme in certain areas of the UK. It will last until the end of March 2009. For further details on this and the New Build Home Buy scheme, use the links below.

Home Buy Agents

Home Buy agents are appointed housing associations. They are a point of contact for affordable housing options. They can handle the entire application process for the Open Market and New Build Home buy products.

Buying Your Home

Buying a home is a major financial commitment which will involve immediate costs, such as legal fees and Stamp Duty Land Tax, as well as new ongoing costs, such as paying the mortgage, repairs and service charges.

For further information on Government Schemes visit www.directgov.co.uk