Tips on Understanding the London Affordable Homes Programme and Part Ownership Scheme
The general consensus of our modern times is that becoming a homeowner can be tricky, especially in London.The UK and the capital share the same housing obstacle – demand outweighs supply. However, there is some excellent news that could be a game-changer in the housing market. And this shift is the process could see hundreds of thousands more people stepping onto the property ladder in 2018.
For many people, renting can become a bit of a cycle that’s difficult to break out of. Fortunately, some recent initiatives are looking to path the way for people to own their own house or apartment. And it’s not ‘pie in the sky’ stuff – the London Affordable Homes Programme is ready to take anyone who wants to obtain an affordable mortgage on this new journey into becoming a London property owner.
What is the London Affordable Homes and Part Ownership Scheme? –
The consensus that is owning a home in London is beyond many people’s financial capability has been a topic for many years. With the promise of matching supply with demand for affordable housing, all that is about to change.
The London Affordable Homes Programmeis a collective term that comprises several government schemes to help people get their foot into the London property ladder. The aim is to allow people on moderate incomes a chance to pay a realistic deposit and monthly mortgage repayment.
The Shared Ownership Scheme is where you buy a percentage of your home, which is usually ¼ or ¾ of the property’s value. You can then purchase the remaining share at a later date, possibly in instalments. There are criteria that you need to meet before you can apply for Shared Ownership which you can read here.
Help to Buy Schemes are for people who have a small deposit amount and are looking for a property within a modest value range. The ceiling limit is £600, 000 in total. The standard deposit amount is 5% of the total value, which is much lower than most mortgage deposits. This is an Equity Loan Scheme, and you can read more about the finer points and terms here.
The Starter Home Schemeis ideal for first-time buyers who are looking at properties below £450, 000 in London. This will most likely be on the outer areas of London, with some excellent developments in locations in the south of the capital. The deposit is higher for this scheme – you’ll need to have roughly 20% of the total value.
There are a few other schemes that make to the London Affordable Homes Programme, and you can read up on them here. The Mayor of London is committing to push for a minimum of 66, 000 affordable new homes per year going forward. It’s looking like a very favourable time for people on lower or moderate wages in London to own their own home.
Tips on How to Secure Your First Home in London –
If you’re seriously considering using one of the housing schemes, you’ll need to start saving now for a deposit. You shouldn’t worry too much at this stage what your target is. The only thing that matters now is to begin saving. And the best way to do that is to set up a savings account and record all your outgoings and expenditure. That’s right – you’re going to become a receipt hoarder and spreadsheet user.
And with regards to what you spend and save – you’ll need to look at where you can tighten your belt. It might take a month off recording how much you spend before you have a realistic idea of outgoings. One thing you should look into is reducing your rent and utility bills. Furthermore, if possible, moving to a smaller apartment or co-housing complex will help trim your monthly expenditure. Then, it’s time to move to name brands and a cheaper supermarket for your food shopping.
Another possible way to boost your savings is to consider a second income. The main thing to remember when saving money is to avoid overworking or becoming miserable in the process. Equally important to only consider taking on a second income or job if it won’t drastically affect your life. Writing work and basic e-commerce sales are viable options which you can begin with relative ease.
And let’s not forget – you’ll need to do some thorough research on each scheme in the London Affordable Housing Programme. Above all, don’t limit your research to the scheme that seems the easiest to obtain. Write down the pros and cons of each plan and consider meeting with an expert or mortgage advisor. Once you have a general idea of what scheme you’re aiming for, pencil in a date and start drafting a timeline for your move-in date.
Safe Removals – We’re Here to Move You into Your New Home in London –
At Safe Removals, we believe that everyone deserves the opportunity to live in an affordable home. And luckily, the powers that be are making the right noises. London is moving towards a more equal housing market that’s inclusive to everyone who wants to own a house or apartment.
There is no better time for first-time buyers to be optimistic about becoming homeowners in London. The possibility of breaking out of the rental cycle is on the horizon. And it’s time for you to start saving up for a deposit.
And when you make progress on your mission to step onto the property ladder, you’ll need to use a reliable removalscompany. Safe Removalsworks with thousands of first-time buyers in London every year. We understand the need to keep costs low, which is why our prices are consistently below the market rates.
We have a range of domestic and business removals packages to suit everyone’s needs. Even if you’re moving into a smaller property to save money, we have an affordable removals service that will meet your requirements.
For more information about our removals and related services, contact ustoday.