A combination of rising house prices and the recession has crushed the prospect of many young people getting onto the property ladder for the foreseeable future.

For those already living at home it is inevitable that they will stay for a longer period of time putting the burden on their parents to support them whilst they save their earnings for a deposit. This is substantiated by a survey released by housing charity Shelter this week who reports more than one in five young people are still living with their parents and around 22% of 18 – 34 year olds still live in the family home with 45% claiming they do so because they cannot afford to move out due to high costs.

The prospect of rising house prices will bring a ray of sunshine to existing homeowners but this potentially means that first time buyers and low income workers who are already scrimping and saving for an average mortgage deposit of 20% will have to save an even larger sum.

For example:
If a person bought a £200,000 home, they would need to accumulate £40,000 (20% deposit)
If house prices rise by 6% by the end of the year it will mean that the house value will increase to £212,000 and the 20% deposit will increase to £42,400.

For prospective new homebuyers who are finding it difficult to raise a large deposit there is an alternative to be considered - Part buy part rent is available for a wide range of people whose household income is under £60,000. Although the average percentage deposit of 20% is still the same, it is based on the share purchased.

For example:
If a person bought a 25% share of a £200,000 home, they would only need to secure a £50,000 mortgage.

The Centre for Economics and Business Research (CEBR) has boldly predicted that house prices will rise by 6% in 2010 due to the improved levels of mortgage lending and expects house prices to be around 20% higher than they are today by the end of 2013.

The forecasts are based on the current 60,000 mortgage approvals per month and are predicted to increase to around 72,000 pm by the end of 2010 and a further 90,000 pm by 2013.

The HomeBuy scheme is the government’s housing solution facilitated through the HCA (Homes and Communities Agency).

The schemes are run by HomeBuy agents, who can help you through the application process to buy a home on a scheme.

HomeBuy agents are appointed housing associations - non-profit organisations that manage housing for people who have difficulty buying a home.

If you think you are eligible for help to get a home through a HomeBuy scheme, contact the local HomeBuy agent for the area where you want to live.

Click here for a list of HomeBuy agents: http://www.smartshare.co.uk/frequently-asked-questions-about-affordable-...

SmartShare is the first national property website that is dedicated to affordable housing. We have thousands of properties available throughout the UK from many of the leading Housing Associations click here to go to our website www.smartshare.co.uk

The current types of HomeBuy are as follows:

Plans have been unveiled for a super green and super cheap eco-village in West Leeds - this development will be the city’s first co-housing project.

Described as a futuristic energy-saving commune it will be almost completely self-sustaining with houses built primarily from straw bales, virtually no artificial heating and recycled rainwater running through the taps. The 20 homes in the LILAC development will comprise of individual units, from one bed flats to four-bedroom houses with communal gardens and some shared resources, including a car-share scheme.

Alan Thornton, director of LILAC, which was formerly known as the Leeds Eco-Village, said bosses were in “advanced negotiations” with Leeds City Council about a location for the project, but confirmed a site in west Leeds had been identified.

Grand Union Place in Tower Hamlets has been transformed from Stepney Gas Works into a rejuvenated affordable, thriving and diverse community. The canal-side development provides 524 homes of different types and tenures supporting households of different sizes, ages and incomes. Properties range from one bedroom flats to six bedroom houses and are dispersed throughout the complex in a mixed array so that there is a blend of social rented accommodation, and homes that are fully or part-owned (part buy part rent scheme) with the different tenures indistinguishable.

There are only two brand new 'part buy part rent' family homes left available at the Bridgefield development in Ashford, Kent.

The open day is on Tuesday 24th November between 12pm and 4pm where you can view the beautiful four bedrooms homes. The properties were developed by Persimmon Homes and a 25% share is available from as little as £47,500.

Peter and Debbie Turnball bought 60% of a £260,000 five bedroom house last month and is more than big enough for their growing family.

Peter says; “We knew that our old house wouldn’t be big enough for much longer. When we decided to look in the Ashford area, we never dreamed we could find and afford a five bedroom house. Now we have a spacious new house, in an area where our son can go for a bike ride round the neighbourhood, safely - something he could never have done at our old place! We’re really pleased and very excited about welcoming the new arrival to our home.”

If you have any questions with regards to shared ownership, part rent part buy, who are the Home Buy Agents, eligibility for affordable housing, how the housing association process works, etc please click on the SmartShare FAQ tab.

The SmartShare team has tried to answer as many frequently asked questions as possible but if you are unable to find the answer you are looking for, why not contact natasha@smartshare.co.uk who will be happy to assist you.

New figures from house builder Persimmon reveal promising signs for the development of affordable homes in the UK, according to the National Housing Federation (NHF).

Persimmon recently announced that pre-tax profits for the first half of 2009 reached £9.8 million, with 4,006 new units completed during this period at an average selling price of £155,524.

Although the figures are a marked reduction compared to last year's, Persimmon added that selling prices appear to have stabilised in most parts of mainland UK, including more latterly in the north of England.

Gavin Smart, research and futures assistant director at the NHF, said the housing association sector is the only one that has been shown to be building more properties year-on-year.

"We hope with increased government investment in affordable housing that housing associations can do even more to deliver decent homes and help support the economy, including the construction sector," he commented.
Source: 27/08/09

A new government scheme to assist people who face having their homes repossessed has been put into practice by an affordable homes specialist.

Plumlife worked with the Homes and Communities Agency (HCA), the Department for Communities and Local Government and Oldham Council to buy a family's home and rent it back to them at a price they could afford.

"The economic downturn has left many homeowners in trouble and repossession is a last-ditch solution that doesn't benefit homeowners or lenders," commented Deborah McLaughlin, regional director of the HCA.

"As someone who loses their home would need to be rehoused anyway, it makes sense to buy their home and rent it to them."

The Mortgage Rescue Plan is available in exceptional circumstances and allows eligible families to either take an equity loan or sell their home and live as tenants.

Plumlife is a not-for-profit company specialising in affordable homes and shared and low-cost ownership.
Source: 19/08/09