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TRANSCRIPT
Gwenda Beckley
Help to Buy Manager
South West Homes
About South West Homes
Who we are and what we do
Recent figures…
A recent poll of parents with adult
children aged 21-40 years found 9
out of 10 parents (87%) believe there
is not enough housing in Britain.
And, almost a quarter of parents of
adult children in the South West
(24%) have at least one adult child
living at home.
Rents Rocket in the South West…
Home Truths 2012 by the National Housing
Federation is an analysis and forecast of
England’s housing market. The report warns
that:
Between 2012 and 2020 rents in the region
are predicted to rise by almost half (48%),
with the average monthly rent moving from
£661 in 2012 to £981 in 2020
Shelter’s Study
• Housing Charity Shelter’s recent study
found less than 10% of suitable homes in
England are afforable for a typical family
hoping to get on the property ladder
• Less than 5% of homes are affordable in
West Somerset
Better News?
• Mortgage lending is the highest in five
years, says the Bank of England
• In September gross lending was
£15.6m, the highest level since
October 2008
Housing Projects Increasing
Royal Institute of Chartered Surveyors
construction market survey shows
growth in the percentage of surveyors
reporting increases for the first time in
every part of the UK
Do you recognise this man?
New Minister
In one of his first speeches as
Housing Minister, Kris Hopkins said
“It was like coming home” to be given
the housing brief after the work he did
during his time at Bradford Council
One of the posters on Inside
Housing responded….
“Based on turnover of the
role, he will soon be “going
out again””
What schemes are there to help?
Get Britain Building Fund
Growing Places Fund
Custom Home Building Loans
Help to Buy Equity Loan
• Announced in budget effective 1 April 2013
• Replace FirstBuy and extended to existing home owners
• Maximum purchase price is now £600,000
• New Build Properties through registered house builders
• Loan of up to a maximum of 20% of the purchase price
• Loan is interest free for the first five years
• Interest payable at 1.75% rising annually by RPI
• Loan repayable after 25 years or when the property is
sold
• Purchasers will need to be able to obtain a
mortgage and have a deposit
For Example…..
Open market price of home £200,000 100%
Help to Buy buyer mortgage £150,000 75%
Help to Buy buyer 5% deposit £10,000 5%
Help to Buy buyer total contribution £160,000 80%
Agency Help to Buy Equity loan £40,000 20%
Help to Buy
Mortgage Guarantee
• PM announced recently the scheme orginally
due to start in Jan would be brought forward
• Not administered by the HCA or through the
Help to Buy Agency network
• Government guarantee to lender
• Participating lenders are NatWest, RBS,
Bank of Scotland or Halifax to use the
scheme.
Shared Ownership
• Applicants must have an income of £60,000 pa or less
• Typically purchase a 50% share with savings or
mortgage
• Pay rent to the housing association on the remaining
50% share
• Can buy further shares (staircasing)
• Existing tenants of social landlords and MOD
personnel have priority
For Example…
• Purchase price of property £130,000
• Share purchased 35% at £45,500
• Deposit 5% at £2,275
• Mortgage 95% of the share value at £43,225
• Rent payable on the remaining 65% share usually
@ 2.75% = £193.65 pcm
Discounted sale
• Also known as shared equity and/or affordable housing
• Often in rural areas or where local connection applies
• Purchasers buy a share i.e. 70%
• No rent to pay on the remaining share
• Must be sold at percentage of OMV e.g. 70%
• Not possible to purchase outright
SWHOG Conference
Sandy Park – November 29th
Any questions?