Low Cost Home Ownership Schemes

Do you want to own a home of your own, but think that you can't afford it?
Have you heard of the Government sponsored HomeBuy Initiative?
You could be a homeowner within 6 to 8 weeks!

What is HomeBuy?

HomeBuy is a Government driven initiative that helps eligible individuals and families find homes that meet their current needs. The Government has appointed a number of HomeBuy Agents throughout England to help those who are seeking to live in specific areas.

For many people, this program will provide the best chance of owning a home in the area in which they want to live and work. The initiative also offers rental options for those who are eligible.

What is a Homebuy Agent and who are Catalyst Housing Group?

Catalyst Housing Group is the Government appointed HomeBuy Agent for Berkshire, Buckinghamshire, Oxfordshire and Surrey. Catalyst Housing Group provides a "one-stop-shop" service for home ownership and rental opportunities that exist in these areas. By registering with Catalyst HomeBuy, individuals are assessed to identify the schemes they are eligible for. Catalyst, as a HomeBuy Agent, work with a number of organisations such as other housing associations, private developers, estate agents and local authorities to ensure customers are kept informed about all the opportunities available to them.

Catalyst also organises regular HomeBuy shows. At these events, independent financial advisers and solicitors provide affordability assessments and advice free of charge. The HomeBuy show is a great opportunity to find out more information and have queries answered face to face. Entry to these shows is free so visit the website for the latest dates.

There are a number of different scheme types that are offered under the HomeBuy initiative. Depending on your individual circumstances you may find that one or more of these are available to you.

HomeBuy Direct
A shared-equity scheme designed to help first time buyers have 100% ownership of their property. The purchaser will be the legal owner with full title to the home and can sell it on the open market without restriction.

The buyer buys a new home, on a designated HomeBuy Direct development, with assistance from the Government and the house builder in the form of two equal equity loans.

The equity Loans would be up to 30% of the purchase price leaving the applicant to raise 70% by way of a mortgage plus a deposit, if available.

The equity loans are interest free for the first five years. After that, there is a fee of 1.75%, rising annually by the Retail Price Index (RPI) plus 1%.

NewBuild HomeBuy
This scheme offers brand new high quality homes available on a 'Part-buy/Part-rent' basis (also known as Shared Ownership). Under this initiative, eligible individuals are able to become home owners by buying a share of a newly built property (from as low as 25%) and pay a subsidised rent on the portion they don't own.

Individuals then have the opportunity to increase their share of the property as their financial situation allows by 'staircasing'.
Catalyst Housing Group can provide you with details of the developments in your area that offer 'part-buy/part-rent' opportunities.
From time to time 'part-buy/part-rent' properties will become available as a result of existing owners moving further up the property ladder. These are known as 'Re-sale' properties.

Intermediate Rent
This option offers new build properties at 80% (or less) of current market rents and is available through a number of Housing Associations. In most cases the initial period is for six months and time frames are reviewed regularly. Under some circumstances, at a later date, there is option to buy a share of the property through another HomeBuy scheme.
This option is also available through some Key Worker organisations such as NHS Trusts who aim to help qualifying or newly qualified staff to settle into their jobs and local community.

Rent to HomeBuy
Under this scheme, commonly referred to as "Try Before You Buy", eligible individuals are able to rent a newly built home provided by a Housing Association at a rate that is normally 80% of the current market rate.
Depending on the development the individual has the option to convert the rental agreement into shared ownership (part-buy/part-rent) after a period of 3 years of 5 years. The rental period is designed to provide an opportunity to save for a deposit to put towards buying a share in their home.

Social HomeBuy
This scheme allows some social housing or local authority tenants to buy their current home at a discount either outright or on a part-buy/part-rent basis. To do so, their landlord must have decided to take part in the scheme.
This is likely to be of interest to tenants who do not qualify for the Right to Buy or Right to Acquire or who are not currently in a position to buy their home outright. Interested parties should contact their landlords to see if they are participating in this scheme.

Eligibility Considerations Eligibility rules have been amended by the Homes and Communities Agency (HCA) for existing homeowners.
As a result all current home owners who wish to be considered for HomeBuy options are now required to have a 'Priority Housing Need' approved by their current Local Authority BEFORE they register with the local HomeBuy Agent for the area they wish to live in.
The priority housing need will be assessed in accordance with the Housing Act 1996.

In addition, to be eligible for HomeBuy schemes, candidates must fit into one of the following criteria and must NOT have a household income in excess of £60,000 per annum.

Once you have met the initial eligibility criteria, the Government has prioritised the following groups for assistance:

First time buyers
First time buyer groups who cannot otherwise afford to buy a home on the open market.

Key workers
As defined by the Home and Communities Agency (HCA). Likely to include those working in the public sector in health, education or community safety - (such as teachers, nurses, social workers and police officers) in areas where high house prices are affecting recruitment and retention.

Social tenants and those on the housing register
Tenants of councils and housing associations and those who are on the Local Authority Housing Register.

Key workers and Social tenants who wish to buy a property through HomeBuy are given top priority.

Those who have had a major change in circumstances
Current or previous home owners who are looking for a new property as a result of a major change in their personal circumstances e.g. divorce/separation, victim of domestic violence. Overcrowding due to a growing family etc. Subject to approval.

So if you meet these requirements what should you do now?

Register with Catalyst HomeBuy by calling 0845 601 7729 or complete an online application at www.catalysthomebuy.org.uk Opens in a new window.. You can find more details about the available options and schemes on the website.

What happens next?
Once on Catalyst Housing Group's Homebuy Register, you will: -

• Receive a letter confirming your eligibility and outlining the level of assistance you are likely to receive.
• Be kept up-to-date with the latest Government initiatives.
• Receive marketing details of any suitable new affordable housing schemes that are being developed in the District.
• Receive details of re-sales of existing shared ownership properties.
• Have access to any other HomeBuy options promoted by Catalyst and advertised through the HomeBuy website, subject to any eligibility criteria.

This information is provided by the Catalyst Housing Group and is subject to change so please visit the website - www.catalysthomebuy.org.uk Opens in a new window. for the latest details as this is updated regularly.