Discount off market value
Part of the Government’s commitment to providing affordable housing has seen the introduction of these discount schemes operated by new build developers. They offer new homes for key workers, with a reduction in the market value, to help those buyers that can afford the mortgage repayments but are struggling to save a big enough deposit due to the value of the property.
How it works
Planning policy changes made by the government allow property development companies under the scheme to build new homes without paying some local authority fees, saving them money on the cost of development which they then, in turn, pass on to potential homeowners. This enables them to offer a discount on the market value between 20% and 50%.
The properties are exactly the same as the rest of the new build properties on the development, with no compromise on quality or energy efficiency. Applicants apply through their housing providers and are assessed individually on their suitability to qualify for the discount.
Check your eligibility
There are no set requirements to be able to secure a property under these schemes and every application is assessed on its own merits, however as a general rule priority is given to those who are:
- first-time buyers
- currently unable to afford a home on the open market
- working in key sectors, such as Doctors, Nurses, Police Officers and Teachers
- living in the immediate local area of the property
Things to consider
There are a couple of important things to be aware of when considering purchasing a property under one of these schemes:
- You cannot profit from the original discount upon the sale of your property – when selling, you must do so at the same level of discount you purchased the property at
- There are only a limited number of properties available, you may therefore have to wait if others are deemed to be more eligible than you.
- You will be required to purchase the whole property.
Making it easier to buy your home
If you are struggling to raise the funds you need to buy your own home and work in a key sector then purchasing a new build property under this scheme may be an option. To find out more get in touch with our friendly team of independent mortgage and protection advisers on 0800 138 5856 or get in touch below.