New scheme launched to help people buy their own council home in Sheffield
A new scheme to give people a foot on the housing ladder is being launched in Sheffield.
Sheffield Council will become a provider and manager of shared ownership homes. People will be able to buy a share of a house or flat from the council and pay subsidised rent on the remaining share, which is kept by the council.
Coun Paul Wood, Cabinet member for neighbourhoods, said: “This is such good news for young families, couples or single people who can afford to buy part of a new home through either a deposit or a mortgage but who can’t get a mortgage for the full value of the property.
“They will need to raise a sufficient deposit, usually between five and 10 per cent, and secure a mortgage to buy a share of the property.
“They will pay rent on the part of the property that is owned by the council. At first they will be able to buy between 10 and 75 per cent of the home based on their ability to afford the purchase.
“They can keep buying shares until they own the property outright.”
The cost of some repairs will be met by the council for the first 10 years then the owner takes on full responsibility.
Coun Wood said it would help reduce competition for social rented homes. People are registered on average eight years before being granted a tenancy.
“We estimate that there are over 5,200 households registered for a council or housing association rented home in Sheffield who have the financial ability to purchase a 25 per cent stake in a three-bedroom shared ownership property.
“This scheme will help households purchase a particular type of home, or in a particular area, that they cannot afford to buy in full.
“It will also allow households on limited incomes to purchase a larger or specialist type of house to meet their needs.”
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