Property Buying Guide
English Partnerships and Key Worker Initiative
What is the First Time Buyers' Initiative and how does it work?
The First Time Buyers' Initiative (FTBI) aims to give more people the opportunity to own their own home by increasing the supply of affordable housing for sale. It is being delivered through English Partnerships, the national regeneration agency.
It is a shared equity scheme that aims to help eligible first-time buyers buy a share in a new home. They must buy at least half of the property and English Partnerships will retain the rest. After living in the home for three years, buyers will pay a charge to English Partnerships based on a percentage of the equity they don't own.
Who is eligible and what are the selection criteria?
Around 50% of the homes will be for key public sector workers, such as nurses, teachers and police officers. The remaining homes will be available to groups identified as priorities by regional housing boards.
For certain groups, the maximum household income should not be more than £60,000. Lower limits may apply to other eligible groups. Priority will be given to people currently in private rented or temporary accommodation.
How do I apply?
Contact your local HomeBuy agent. HomeBuy agents assess eligibility and help buyers find a suitable home in their area.
More on English Partnerships
In January 2005, the Office of the Deputy Prime Minister (now Department for Communities and Local Government (DCLG)) announced the First-Time Buyers' Initiative as part of its plan, Sustainable Communities: Homes for All. It aims to give more people the opportunity to own their own home by increasing the supply of affordable housing for sale. As the national regeneration agency, English Partnerships is working with DCLG to deliver the initiative.
The FTBI is part of the DCLG's HomeBuy low cost home ownership initiative and is positioned to target key workers and other eligible groups that have sufficient income to sustain home ownership but are currently prevented from entering the housing market by the prevailing demand/supply conditions.
The fact that fewer and fewer first time buyers are able to get a foot on the property ladder indicates that help is needed to enable people to get on the road to home ownership. In many areas there is a growing affordability gap between what people earn and the price of homes. There is also a growing wealth gap between those who own their own homes and are enjoying the benefits of increased equity, and those who don't.
Equally, it's important to address the aspiration gap. Around 90% of people want to own their own homes but only 70% actually do so at present.
The FTBI is similar in many respects to a shared equity scheme because it aims to address these issues by enabling eligible first-time buyers to buy a new home that's affordable to them (at least 50% of the total market price), with English Partnerships retaining an entitlement to a share of the future sale proceeds. After living in the home for three years, buyers will pay a monthly charge to English Partnerships based on the agency's remaining entitlement.
FTBI homeowners can move up to full ownership by making additional payments that will reduce English Partnerships' entitlement to a share of the future sales proceeds at any time.
FTBI has a target of delivering up to 15,000 homes across England by 2010, increasing the supply of affordable homes for first-time buyers and helping to address the current gap between earnings and rising house prices. This is part of the Government's initiative to help 100,000 people into home ownership by 2010 through a range of public-private schemes.
FTBI homes will only be available on designated schemes where English Partnerships has an agreement in place with the house builder to provide affordable homes for the initiative.
Three routes have been identified to create the new homes through the FTBI. They will be provided through current English Partnerships projects, such as the Hospital Sites Programme and via private sector schemes, where developers receive FTBI funding to allow them to sell a portion of their market sale homes to first-time buyers.
It is also likely that surplus public sector land not in English Partnerships' ownership could be used to deliver FTBI homes.
Eligibility
Around 50% of the homes to be made available through the initiative will be for key workers such as nurses, teachers and police officers living across England. The remaining homes will be available to those groups identified as priorities by regional housing boards.
For certain groups, a maximum household income of £60,000 will apply. Lower limits may apply to other eligible groups. Priority will be given to people currently in social/private-rented or temporary accommodation.
While English Partnerships is responsible for working with DCLG to deliver the homes for this initiative, HomeBuy agents will be used as the first point of contact for first-time-buyers and to assess eligibility and help buyers find a suitable home in their local area.
A number of HomeBuy agents have been appointed by the Housing Corporation. They will be responsible for managing the government's range of low-cost home ownership schemes, including FTBI.
Current Status
For more details, including how to register your interest, go to the Housing Corporation's website.
In July 2006 a competition was announced for private sector developers to submit schemes to become part of the FTBI. It is anticipated that up to 40% of the target of up to 15,000 homes by 2010 will be provided as a result of English Partnerships working with the private sector in this way.
Useful websites
www.communities.gov.uk
www.englishpartnerships.co.uk
www.housingcorp.gov.uk
www.keyworkerliving.co.uk