In the Autumn Statement, the Chancellor announced some sweeping changes to help families own their own home. A new scheme known as Help to Buy: Shared Ownership will be launched and will remove many of the current restrictions on buying a home through shared ownership according to
The scheme will allow people to buy a share of between 25% and 75% of a home. From April 2016, anyone who has a household income of less than £80,000 outside London, and less than £90,000 inside London will be able to buy a home through shared ownership. The scheme will apply across England and priority will only be given to military personnel.
The Help to Buy: Equity Loans scheme will also be extended until at least 2021. In addition, the upper 20% limit for an equity loan will be increased to 40% for buyers in the Greater London area from early next year. This means buyers in London will need to contribute a minimum 5% deposit, the government will loan up to 40% and a mortgage will be required to cover the balance.
There will also be a 20% discount off the market price for first-time buyers (aged under 40) purchasing starter homes. The government expects over 200,000 starter homes to be built over the coming years and will release public land and re-designate unused commercial land for Starter Homes.
The Right to Buy scheme will also be extended to housing association tenants next year giving 1.3 million households the chance to become home owners.
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