Apr 17 2007
English Partnerships, the Government agency leading on the rejuvenation of communities across England, has identified 15 new housing developments to be awarded funding for a total of almost 600 new homes through its First Time Buyers’ Initiative.
The developments announced today – by a number of leading private and public sector developers and RSLs – are the second tranche of up to 40 sites which English Partnerships hopes to identify this year, and follow hard on the heels of the first tranche of 18 developments announced in January.
Together the sites will provide around 1,300 homes for first time buyers across the country – putting the Initiative on target for its first year of operation – and will contribute to helping 120,000 people into home ownership through the Government’s HomeBuy scheme by 2010.
Duncan Innes, the English Partnerships Director responsible for the First Time Buyers Initiative said, “We are offering a golden opportunity for people who have been priced out of the property market.
“We all know that there is an increasing gap between earnings and house prices and by reserving affordable new homes exclusively for first time buyers, English Partnerships aims to help as many people as possible to take their first steps towards full home ownership.”
Housing Minister, Yvette Cooper, said, "With rising house prices, many first time buyers are struggling to get a first foot onto the ladder. Just because families can't afford the full house price doesn't mean they shouldn't have the chance to get started and buy a share in the first home of their own.”
Today, English Partnerships is also announcing the selection of Housing Options Plus, as National HomeBuy Agent for the initiative. Housing Options Plus is a partnership between regional HomeBuy Agents, Metropolitan Home Ownership and Tower Homes, who already provide a range of services for low cost home owners across London. As National HomeBuy Agent, Housing Options Plus will provide a one-stop-shop for all FTBI home owners post-sale and will manage English Partnerships’ interest until the home owner ‘staircases’ into full ownership.
Graeme Moran of Metropolitan Home Ownership and Steve Nunn of Tower Homes said: “We are delighted to have been selected to work with English Partnerships as National HomeBuy Agent. Our experience in marketing and managing low cost home ownership schemes across London and the south east means that we are well-equipped to provide similar services for purchasers of FTBI homes right across England.”
Under the First Timer Buyers’ Initiative, eligible buyers contribute a minimum 50 per cent towards the full purchase price of a new home through an affordable mortgage, with English Partnerships contributing the rest by way of a direct payment to the developer.
First time buyers can then ‘staircase’ to reduce English Partnerships share of the equity at any time, and after three years, will start to pay a charge to English Partnerships based on the contribution it made.
Around 50 per cent of the new homes will be for key workers such as nurses, teachers and police officers. The remaining homes will be made available to local residents who meet priority criteria identified by Regional Housing Boards.