Monday 2 October 2006
Help to take first steps into home ownership

The launch of a major new shared ownership scheme is set to help even more families on low incomes, first-time buyers and key workers get onto the property ladder.

The new Open Market HomeBuy package will be available through Keyhomes East, the Government-appointed HomeBuy agent for Bedfordshire, Cambridgeshire and Northamptonshire.

Keyhomes East is part of bpha, a major provider and developer of affordable housing that has already helped thousands of people in the region into low cost home ownership.

The Government has launched the new Open Market HomeBuy product to help meet its target of helping 100,000 households into home ownership between 2005 and 2010.

The product improves on the previous Open Market HomeBuy by bringing in four private sector lenders to increase the amount of funding on offer.

Keyhomes East will act as a one-stop shop for local people applying to buy a home on the open market using the scheme.

The new scheme will increase the purchasing power of eligible households by around 25 per cent - providing a real boost for those living in the east of England, where average house prices are around seven times higher than average wages.

No deposit is required and the package makes it around 20 per cent cheaper than buying a home unassisted, meaning households currently priced out of the housing market are able to take their first step on the housing ladder.

Currently, a family on a combined income of £35,000 could typically obtain a mortgage of just £122,500. But if eligible for Open Market HomeBuy, they could potentially buy a home worth over £160,000.

The new Open Market HomeBuy product works by offering eligible households a mortgage with one of four High Street lenders, topped up by a 12.5 per cent equity loan from the lender, and a further 12.5 per cent loan from the Government. In Bedfordshire the loan will be provided via Keyhomes East, which will also manage the scheme.

Roy Hind from Keyhomes East said: "As HomeBuy agent for Bedfordshire, we have already helped hundreds of people on low incomes to buy a home of their own at a price they can afford.

"As house prices continue to rise, more and more people are being priced out of the market. The new Open Market HomeBuy product offers a real boost to help people take that all-important first step towards home ownership.

"This new deal will be of particular help to key workers - frontline public sector staff who are essential to the effective running of our communities. While the product will help them to buy a home, it will also have a knock on effect across Bedfordshire by helping to improve recruitment and retention rates for vital posts such as teachers, police officers and nursing staff."

Keyhomes East is the Government's HomeBuy agent for a zone covering Bedfordshire, Cambridgeshire, Peterborough and parts of West Suffolk. It is also the HomeBuy agent for Northamptonshire.

As well as offering the new Open Market HomeBuy product, Keyhomes East also offers a similar scheme for new-build homes, known as New Build HomeBuy.

To find out more about Open Market HomeBuy in Bedfordshire and other help available, visit keyhomes-east.org.uk or call 0845 456 6757.

Background information on Open Market HomeBuy

Who is eligible?
Social housing tenants and those on the housing register: tenants of councils and housing associations, and those who are on the housing register, waiting for a council or housing association home to rent

Key workers: those working in the public sector in health, education or community safety - such as teachers, nurses and police officers - in areas where high house process are affecting recruitment and retention

Priority first time buyers: households who can't afford to buy their own home, who have been identified as eligible for assistance by Regional Housing Boards

Who are the lenders?
The four private lenders are Nationwide, Yorkshire Building Society, Advantage - a Morgan Stanley company, and Bank of Scotland.