The Government has now released the new affordable home scheme, which means that those who have been affected economically by Covid-19, will be able to afford housing. This new model means that the minimum initial share would decrease from 25% to 10%, with the option to buy additional shares of the home in 1% instalments, with fees that have been decreased.
Around £700 million will be available as part of the investment for new homes and about half of the new homes will be available for the affordable home’s ownership, while the rest of these will be available for discounted rent, which also includes 10% of these being for supported housing. This shared ownership model will include a ten-year period whereby the Landlord will pay for new shared owners to be covering the finances of any maintenance and repairs for the property. This new programme will also allow a large number of tenants in these properties the right to purchase a stake in their home.
This therefore means that this could provide up to 180,000 new homes throughout the UK, however this is dependent on the economy. There will be a published document from the public body outlining the affordable homes programme, with invitations being sent to those such as local councils to start formulating their bids.