PLUMLIFE, the not for profit company responsible for delivering affordable HomeBuy schemes in Greater Manchester, Lancashire and South Yorkshire is urging first time buyers to take advantage of government-backed low cost home ownership schemes before the Stamp Duty holiday is scrapped at the end of March 2012.
The Stamp Duty holiday is still available to first time buyers on all properties valued at under £250,000, but will be re-instated at a rate of 1% from the beginning of April. On a £250,000 home, that equates to a further £2,500 for the buyer to find, which when added to the other costs on top – deposit, legal fees etc – is no mean sum.
HomeBuy schemes are aimed at helping aspiring first time buyers who earn a household income of £60,000 or less. They include Shared Ownership and FirstBuy, the new equity loan initiative. Both schemes tackle head-on the problem for buyers of raising the huge deposits now required as standard by lenders – typically around 10 – 20% of a property’s value.
Shared Ownership is a popular part buy-part-rent scheme which gives working people the chance to buy beautiful homes that would otherwise be out of reach. Monthly payments works out cheaper than if you take out a traditional mortgage. Buyers are free to purchase more shares in the future if they want to.
FirstBuy offers eligible buyers a 20% interest-free equity loan, funded jointly by the Homes and Communities Agency (HCA) and private house builders. The buyer needs only to come up with a 5% deposit.
There are hundreds of desirable new-build homes available to buy through the scheme from the UK’s top house builders including Strata, Persimmon Homes, Barratt’s and Redrow.
Plumlife deputy chief executive, Matthew Harrison, said: “It’s unfortunate for first time buyers that this initiative is ending. Times are tough and anything which helps cut costs of home buying is a good thing. For people who are interested in HomeBuy schemes, now is a good time to act, as there is still time to take advantage of this tax break.
“The average age of first time buyers in the north and west has now risen to 37 years old. People trying to get on the property ladder without some form of financial assistance face a really tough challenge. Without HomeBuy schemes such as shared ownership and FirstBuy, it’s clear that many working people would struggle ever to become home owners.”
For information on affordable homes, please contact Plumlife on 0161 447 5050 or visit the website: www.plumlife.co.uk.
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