The Government’s low cost home ownership scheme “HomeBuy2”, introduced in April 2006 operates across England. It is open to social tenants, people on the waiting list (who would be a priority for a social rented home), key public sector workers through our Key Worker Living programme, and first time buyers prioritised for assistance by Regional Assemblies. It operates alongside the Right to Buy and Right to Acquire schemes which enable eligible social tenants to purchase their rented home.
The scheme includes three products: Open Market HomeBuy (shared equity), New Build HomeBuy (shared ownership) and Social HomeBuy. The First Time Buyers’ Initiative scheme run by English Partnerships, the national regeneration agency, is part of the New Build product. These schemes help purchasers get onto the housing ladder with shares from 25 per cent. As announced in the 2007 Budget, from April 2008, we are offering two new equity loans which will be available through the Government’s shared equity scheme Open Market HomeBuy. The loans will improve affordability for purchasers and provide more choice in the mortgage which buyers can take out.
As part of the Housing Green Paper we are increasing outputs of new affordable housing to at least 70,000 by 2010-11 which will include at least 25,000 new shared ownership and shared equity homes a year by 2010-11 mainly funded by the Housing Corporation.