Case Study 1
The gap between earnings and property prices has meant that young people are increasingly struggling to afford a place of their own. Sarah Flynn and her boyfriend Craig have bucked this trend thanks to a new scheme that gives key workers and local residents in Warrington the chance to get a foot on the ever important property ladder.
The new scheme has seen Countryside Properties collaborate with the Homes and Communities Agency to enable people who cannot otherwise afford to buy a new home to purchase a property on the popular Carrington Park development on Firth Boulevard near Warrington town centre.
Sarah Flynn (22), a paediatric nurse at Pendlebury Children's Hospital was a perfect candidate for the scheme.
"Although previously from Ormskirk, I was born in Warrington and my boyfriend lives here so setting up home in the town seemed like the obvious choice when we decided to move in together," commented Sarah "I also needed somewhere easily commutable to Manchester."
Sarah was one of the first candidates to take advantage of the First Time Buyer Initiative (FTBI) which enables buyers to contribute a minimum of 50% towards the full purchase price of a new home with the Homes and Communities Agency contributing the rest by way of direct payment to the developer.
"Money was always going to be a major issue" continued Sarah, "and we'd resigned ourselves to the fact that we would be saving for a very long time before we could get a mortgage we could afford.
"We'd seen Carrington Park being built so we decided to pop in to have a look around and it was only then that we realised the opportunities available through FTBI. I'd read about shared ownership schemes before but had been dubious. This seemed different; more affordable and no catches. Before we knew it we were on our way to owning our first home together in a gorgeous development situated right where we want to be."
Unlike other shared ownership schemes, where buyers are required to buy part of a property and pay rent, there is no charge to pay on the assistance provided by Homes and Communities Agency for three years. After this time home owners pay fees on the amount contributed by Homes and Communities Agency, rising to a maximum of 3% after five years in the property.
"We're dead chuffed with our apartment; it exceeded all of our expectations. There was no need to decorate because the finish was so clean and modern, and the FTBI scheme meant that we had more money in our back pockets to spend on nice furnishings and accessories."