Looking to step onto the property ladder but confused by the different buying options?
Many people aspire to step onto the property ladder and own their own home. In high-value areas like London, this can seem like a difficult aspiration to achieve. However, there are several Government-backed affordable housing schemes designed to help people secure a home of their own.
Peabody New Homes has a range of new homes throughout London and the Home Counties, available with housing schemes like Shared Ownership aimed to help first-time buyers find a place to call home. Discover a range of buying options available and see which one is right for you, or contact our team to find out more.
Is Shared Ownership right for me?
Shared Ownership is an affordable housing scheme designed to help people step onto the property ladder. It allows you to buy a share in your home (usually 25% initially) and pay rent to a housing association for the part you don't own. You can also 'staircase' and buy more shared until you eventually own 100% of the home.
As you are only buying part of the home, you will need a much smaller deposit than buying on the open market but still enjoy the benefits of being an owner-occupier.
Shared Ownership may be right for you if;
- You have a household income of less than £90,000
- You have a small deposit and can't afford to buy on the open market
- You want the security of home ownership and want to stop renting.
Is Shared Ownership resales right for me?
Shared Ownership resales are the same as Shared Ownership where you buy a share in a home and pay rent on the share you don't own to a housing association.
The only difference is that a resale is a home that a current owner bought through Shared Ownership and now wishes to sell. The principle is the same as buying a new-build through Shared Ownership but you must purchase at least the share that the seller currently owns i.e. if they staircased to 40%, then you must buy at least 40% too.
Shared Ownership Resales may be right for you if;
- You have a household income below £90,000 and meet the basic Shared Ownership eligibility criteria
- You want somewhere ready to move into now
- You are looking for a home with a bit more character and somewhere with an established community.
Is London Living Rent right for me?
London Living Rent enables Londoners to rent a home at a discounted rate compared to renting privately for a periodic tenancy for up to 10 years.
As the rent is discounted, it allows you to save this towards eventually buying the home through Shared Ownership over the duration of your assured tenancy.
London Living Rent may be right for you if;
- You have a household income below £75,000
- You need more time to be able to save up towards a deposit to buy a home
- You are happy to continue renting and put savings towards buying a home through Shared Ownership.
Are Private Sale homes right for me?
Buying a private sale home means buying on the open market and usually getting a mortgage for the entire value of the home at the agreed sale price. You will usually need to put down a deposit to secure a mortgage and will be an outright owner of the property and pay no rent.
Private sale homes are usually for people who don't need the assistance of an affordable buying scheme like Shared Ownership.
Private Sale may be right for you if;
- You have a household income above £90,000
- You have sufficient savings towards a deposit to secure a mortgage
- You are looking to find a place to invest in and make your own in a great location with high specifications.
"We really wanted to stay in London and buying through Shared Ownership was the best way to make this happen. Everyone at Peabody New Homes was so helpful and very efficient, guiding us through each stage of the process. From my initial phone call, they managed to book me an appointment for the following week. I was so impressed with the quality of the homes here. "
