Government home ownership schemes
If you cannot afford to buy a home outright you may be able to get some financial help through a shared ownership scheme, Help to Buy Equity Loan Scheme or Discounted Market Sales scheme.
Discount Market Sales (DMS)
Discount Market Sale (DMS) is an affordable home ownership product aimed at helping first time buyers get onto the property ladder by enabling them to buy a home at a discounted price.
The homeowner is not required to pay back the discounted amount at any stage of homeownership and the discount remains with the property on all future re sales.
In collaboration with the developer Councils can offer properties for sale to eligible purchasers at a discounted price which is a minimum of 20% of the market value.
This is a great way to make home ownership more accessible to first time buyers.
First Homes Scheme
First Homes are a specific kind of discounted market sale housing.
First Homes are the government’s preferred discounted market tenure and should account for at least 25% of all affordable housing units delivered by developers through planning obligations.
First Homes are new build properties which are sold with a discount of at least 30% of the market value.
They will be sold to local people who want to stay in the community where they live or work but are struggling to purchase a home at market prices. Priority is given to first-time buyers, serving members and veterans of the Armed Forces, and key workers, such as nurses, police and teachers. The discount will be passed on to future buyers when First Homes are resold so more people can be helped onto the ladder.
First Homes applicants will require a local connection as specified in a to d below, the only exception is the Armed Forces criteria. This will also be stipulated in the S106 Deed of Variations for each First Homes Scheme. The “Key Workers” definition adopted is highlighted below, these applicants will have a requirement to live within North East Derbyshire District due to their employment as a Key Worker where their work is primarily located in the North East Derbyshire District.
Key Worker definition means a person employed or with a confirmed job offer in;
- Health and social care
This includes doctors, nurses, midwives, paramedics, social workers, care workers, and other frontline health and social care staff.
- Education and childcare
This includes childcare, support and teaching staff, social workers.
- Public safety and national security
This includes police and support staff, Ministry of Defence civilians, Armed Services Members fire and rescue service, employees (including support staff), National Crime Agency staff, those maintaining border security, prison and probation staff and other national security roles, including those overseas.
There is a local connection criteria which also must be met, which is:
- is ordinarily resident who has lived or worked within North East Derbyshire District and has been for a continuous period of not less than 12 consecutive months prior to exchange of contracts for the relevant First Home; and/or
- is a non-key worker who has worked within North East Derbyshire District on a fixed term permanent contract for 24 months; and/or
- who has a close family association with North East District by reason of a parent or child who is ordinarily resident within North East Derbyshire District; and/or
- has a requirement to live within North East Derbyshire District due to their employment as a Key Worker where their work is primarily located in North East Derbyshire District;
Find more information on the First Home scheme on the Government website.
To find out what properties are available for Discounted Market Sales in the district contact the Council’s Housing Strategy team.
95% Mortgages
The mortgage guarantee scheme allows first time buyers to purchase a home with only a 5% deposit. The scheme will help to increase the supply of 5% deposit mortgages for eligible households by supporting lenders to offer these products through a government-backed guarantee.
Help to Buy: Equity Loan
Is a loan from the government that you put towards the cost of buying a newly built home. Help to Buy aims to help first-time buyers to get on the property ladder. If you’re eligible for an equity loan, you can borrow up to 20% (40% if you’re in London) of the market value of a new home. When you take out an equity loan, you only pay interest on the amount you borrowed.
Shared Ownership
Gives first time buyers the option to buy a share of their home (between 10% and 75%) and pay rent on the remaining share.
Shared ownership is being made more accessible by reducing the initial share you can buy in your new home from a quarter to 10% and allowing you to increase your share in 1% instalments. This means that you can increase your share of the property in manageable payments when you want, at a pace that is right for you
Find more information on home ownership schemes at the Government website.
To find out what properties are available in the district to buy through these schemes contact the Help to Buy agent at Help to Buy Midlands and London,
Register Providers Partners
Registered Providers are 'Registered Social Landlords' (not private landlords) who provide housing for rent and shared ownership in much the same way that councils do and are not-for-profit organisations.
To rent one of the Housing Association properties, applicants will be nominated from the Councils' waiting list via the Rykneld Homes: Choice Move team. The properties will be allocated through the banding and bidding process and will be in line with the Councils' Choice Based Lettings and Allocations Policy (.pdf | 897kb).