Property Co-loanership for First Time Buyers

A new scheme introduced by Hillingdon Council in the UK is offering select first time buyers up to £16,000 to use a deposit on their home. Not so much co-ownership, but more free loanership.

Property Co-loanership for First Time Buyers

A new scheme introduced by Hillingdon Council in the UK is offering select first time buyers up to £16,000 to use a deposit on their home. Not so much co-ownership, but more free loanership.

Hillingdon Council, a Conservative run borough council has introduced a new funded scheme to encourage local Hillingdon residents to become homeowners. Aimed at young professionals seeking to make a their first move on the property ladder but constrained due to costs will be given up to 7.5% deposit through the scheme towards their house purchase.

Though funds are limited, the first 6 from over 60 applicants are currently being considered. Applicants must have lived in the borough for at least ten years, have a pre-approved mortgage in place, are buying a home not worth more than £210,000 and be able to supply a deposit of 7.5% of their own. If they retain the property for at least three years, the deposit supplied by the council will be waived.

Head of housing, Neil Stubbings, said the scheme is targeted at helping young, reasonably well-off people to stay in the area and keep adding to the economy. Mr Stubbings added we want to attract those people who are thinking ‘I’m not even able to get in sight of the bottom rung of the property ladder’.

Perhaps seen as an a new co-buying shared ownership alternative where two pay but only one live there. But does it really support the first time buyer market?

A number of critics have voiced concerns over the scheme, not least as it excludes key workers who are seen as being discriminated against due to their low wage yet are a significant market segment struggling to get a foot on the property ladder.

And at Co-Buyers we agree. Key workers are an essential part to every economy yet are often overlooked. Surely there could be scope to support both the young middle class and importantly those that support them.

Full details from Hillingdon Borough Council on this scheme can be found here.

Posted by Mark on 04/02/2008

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