Changes made by the government are set to reverse the decline in home ownership in London, particularly with first-time-buyers.
It’s thought that 175,000 more Londoners will be eligible for shared-ownership homes as of April 2016.
At the moment, local councils currently decide who takes priority for a shared-ownership property. They do this based on salary occupation and location and until now, priority has been given to so-called ‘key workers’ who do jobs such as firefighter and police officer.
Local councils currently dictate who should take priority for shared ownership based on a wide range of factors — from salary to occupation and location. But no longer will public sector “key workers” such as firefighters and police officers have official priority.
But now, when the changes come into effect in spring:
- Existing property owners will be able to apply
- The number of bedrooms will be not be capped
- The qualifying salary has risen to £90,000 (it was previously £71,000)
The picture is looking worrying for first-time-buyers and many other home buyers in London. Prices in the capital are high, mortgage lenders are demanding high deposits, and private rents are also expensive, making the cost of living somewhere in London almost impossible for many on average incomes. These new changes however are expected to make it easier for many to get on the ladder.
Help-to-buy is an alternative for people who want to purchase a property. Here's a recap on the scheme
Help to Buy gives buyers an equity loan of up to 40 per cent when purchasing a new home from a house-builder. Buyers have to put down five per cent of the purchase price.
If you’re thinking of going down this route, you can register with the Mayor’s First Steps programme at sharetobuy.com/firststeps.
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