By Neil Merrick
4 February 2010
Mortgage lenders are being offered extra incentives to revive shared ownership schemes by providing loans to first-time buyers.
A new model lease drawn up by the Homes and Communities Agency is designed to give lenders greater protection and should help to boost the sale of properties built by housing associations for the New Build HomeBuy scheme.
Sales of shared ownership properties have plummeted during the recession, reducing the ability of associations to subsidise other house building. Thousands of properties that were intended for sale were converted to social renting.
The lease, unveiled on February 1, was welcomed by the Council of Mortgage Lenders, which said it should help sustain lending for shared ownership schemes once the mortgage market recovers.
Lucy Thornycroft, investment leader at the National Housing Federation, said: ‘We hope that these changes, combined with the very low levels of repossession of shared ownership properties, will encourage lenders to commit greater mortgage funds.’
4 February 2010
Mortgage lenders are being offered extra incentives to revive shared ownership schemes by providing loans to first-time buyers.
A new model lease drawn up by the Homes and Communities Agency is designed to give lenders greater protection and should help to boost the sale of properties built by housing associations for the New Build HomeBuy scheme.
Sales of shared ownership properties have plummeted during the recession, reducing the ability of associations to subsidise other house building. Thousands of properties that were intended for sale were converted to social renting.
The lease, unveiled on February 1, was welcomed by the Council of Mortgage Lenders, which said it should help sustain lending for shared ownership schemes once the mortgage market recovers.
Lucy Thornycroft, investment leader at the National Housing Federation, said: ‘We hope that these changes, combined with the very low levels of repossession of shared ownership properties, will encourage lenders to commit greater mortgage funds.’
