Councils and associations ponder alternatives to £182m initiative
Bid to replace axed open market schemes
Councils have entered talks with housing associations in a bid to fund replacements for the £182 million open market homebuy scheme axed by the government last month.
Moat and Places for People are in early discussions with local authorities to set up schemes to help people buy homes on the open market.
Housing minister John Healey revealed last month he was withdrawing backing for open market homebuy, which has helped to house more than 14,000 people, to concentrate on new build homeownership schemes (Inside Housing, 3 July).
The waiting list for Places for People’s ‘ownhome’ product has now been suspended and Moat has closed its ‘my choice homebuy’ scheme to new applicants.
Marilyn DiCara, director of sales and marketing at Moat, said it had been approached by a local authority wanting to create a replacement scheme.
If the scheme proves successful, Dartford-based Moat was hoping to extend it across all the regions it works in, Ms DiCara added. ‘We would like to create a template which we could roll out across our other local authority areas. Moat still has 9,000 households on its waiting list for “My choice homebuy”.’
A spokesperson for Places for People said it was in discussion with a number of local authorities to create a replacement for its ‘ownhome’ product. ‘Despite the uncertainty in the property market, it is clear that access to homeownership and the necessary finance is still often out of reach for many hard-working families,’ he said.
‘So like “ownhome”, these new schemes will help people take those first steps on the housing ladder, and buy the home of their choice on the open market.’
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Readers' comments (2)
Michelle Lewis | 02/09/2009 4:05 pm
I spent most of yesterday in tears after finding out that I will no longer be able to purchase my property after months of searching. As a young person, owning a home is far more than just bricks and mortar, it is a chance to secure your future and gain independence, so having the rug pulled out from your feet just when you are firmly standing on it is very disheartening. I hope and pray that the talks result in some sort of re-launch of these schemes.
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lynne celik | 14/09/2009 2:18 pm
me too. i am single and have been advised the highest mortgage for me would be 70k. this ownhome scheme would of put me on the ladder. i am now hoping like you that these talks amount to something exciting!!!! good on the housing associations
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