New Build Homebuy Brief Guide
What is New Build HomeBuy?
New Build HomeBuy (formerly known as Shared Ownership) was introduced to help people who cannot afford to buy a home outright. Through New Build HomeBuy you buy a share of the property and pay rent on the remaining share you do not own. Gradually you may buy further shares and eventually own your home outright.
Who can buy through New Build HomeBuy scheme?
The scheme is intended for people who cannot afford to buy a suitable home in any other way. They must be in housing need and be unable to afford outright purchase. Priority will normally be given to existing public sector tenants or those on local authority or social landlords' waiting list.
Can I buy a New Build HomeBuy home with someone else?
Up to four people can become joint owners but all joint applicants must individually and jointly meet the eligibility criteria. Ask your solicitor/licensed conveyancer to advise you.
What kind of property can be bought through New Build HomeBuy?
New Build HomeBuy homes may be new or renovated flats or houses which are sold by social landlords. Prices vary according to location but are expected to be within the means of those people who cannot afford the prices of property available for sale in the open market.
How does New Build HomeBuy ownership work?
The scheme allows you to purchase a share of a property from a social landlord, usually a housing association. The share you purchase is funded by a mortgage which you will need to arrange with a bank or building society. The remaining share you do not own is rented from the social landlord. The size of the share to be purchased will depend on your income and savings. Normally applicants buy a 50% share but you may purchase a smaller or larger share (to start with, you can buy as little as 25% or as much as 75%). The higher the share you purchase the less rent you will have to pay. You will also have to pay a service charge when you buy a flat. Later on, if you wish and can afford to do so, you can buy a further share. When you purchase through New Build HomeBuy, the social landlord will grant you a lease which sets out your rights and responsibilities.
Where to go for further advice?
Contact your local HomeBuy Agent. HomeBuy Agents are appointed housing associations who provide a 'one-stop-shop' and point of contact for affordable housing options in a given area in England and handle the entire application process. Alternatively, you can contact one of the Housing Corporation on
0300 1234 500 who will give you the names of social landlords who are developing New Build HomeBuy, or other home ownership schemes, in the area in which you wish to buy. Your local housing advice centre or Citizens Advice Bureau should be able to give you helpful advice and more detailed local information. Your local authority may also be able to help.
