Vision realised for first time buyers in Plymouth

The first people to purchase a new home using an innovative Government initiative at a Plymouth development have moved in this week.

Unlike many would-be home owners who have faced difficulties recently gaining mortgage approvals without a substantial deposit, three new home owners at Vision @ Devonport found purchasing their first property a breeze using the Homes and Communities Agency’s (HCA) First Time Buyer Initiative (FTBI).

The FTBI has given many the chance to own their own home by purchasing it at a more affordable initial price and without the need for a deposit, as the HCA lends them up to 50% of the purchase price.

This week, couple Laura McCullum, 24, and Marc Hodgson, 25, moved into a spacious three-bedroom townhouse and electrician Luke Stokes, 25, took ownership of his very own apartment.

Process technologist Laura and Marc, who works for Plymouth City Council, purchased a ‘Sound’ townhouse, which has a separate study and dining room as well as three spacious bedrooms. Laura said: “We’d been renting nearby for two years and felt it was time to buy a place of our own but didn’t think it was possible without savings. When we realised we could buy a house this size on our budget we were thrilled as we thought we’d only be able to afford a tiny one-bedroom studio.

Similarly Luke thought home ownership was out of reach. He said: “I didn’t want to throw away dead money by renting but I also didn’t have a substantial deposit to enable me to get a mortgage via a conventional application.

“Without the FTBI, I don’t think I would be in the position I’m in now. Even if I had been able to secure a mortgage another way, I would probably have only been able to afford a property that was in need of a lot of work, in an area I didn’t like. But through the scheme I’ve been able to reserve a brand new home, close to work, and I will still have some money in my pocket to have a life.”

The initiative means that first time buyers can get onto the property ladder with a contemporary apartment in one of Plymouth’s main regeneration areas for an initial outlay as low as £59,000.

There are just 17 FTBI homes remaining at Vision @ Devonport after 31 were snapped up during the first three months of the scheme and Redrow is delighted with the success.

HCA regional director Colin Molton says: “The HCA is committed to helping provide affordable homes for purchase or rent in locations where people want to live, work and relax. The FTBI scheme in Devonport has been important in helping first time buyers purchase a new home and at the same time has been instrumental in the site being able to progress to the next phase of development. Devonport is a win:win situation for new home owners and for the development of a new community.”

Hannah Newnes, area sales manager for Redrow Homes, says: “We are delighted to welcome the first residents who have purchased through FTBI to Vision at Devonport. It’s always great to see first time buyers like Laura, Marc and Luke taking their first steps onto the property ladder, especially when it may not have been possible for them otherwise.”

The scheme is available to first time buyers who are able to attain a minimum of a 50% mortgage to put towards the cost of the property. The HCA then assists by lending them the outstanding amount. The scheme is administered at Vision @ Devonport by local agent Home2Own, who act on behalf of the HCA and help guide the buyer through the purchase process.

Gwenda Beckley, HomeBuy manager for Home2Own, said: “We’re delighted with the on-going success of the FTBI at Vision. It is a brilliant opportunity for first time buyers in Plymouth to get a foot hold on the property ladder.”

The buyer owns 100% of their new home; however, the percentage contributed by the HCA must be repaid if and when the house is re-sold. This provides buyers with an added cushion against negative equity if the resale price drops below the original purchase price.

Buyers can make part payments to the HCA or repay the whole sum at any time. After three years, the purchaser will start to pay a fee to the HCA, based on the size of their outstanding contribution. This fee is 1% after three years; 2% after four years; and 3% thereafter. A full and clear explanation of the terms and conditions is available from Redrow.

Redrow is regenerating the former South Yard Stores Enclave, in Devonport, in conjunction with the HCA, to create a vibrant new development complete with more than 460 new homes, shops, offices and community facilities called Vision @ Devonport.

Currently available through the FTBI at Vision @ Devonport are one, two and three-bedroom homes from an initial outlay of just £59,000. For this, purchasers get a brand new home with modern fixtures and fittings, that’s more energy efficient than an older property so potentially cheaper to run and without the need for any repairs or renovation.

For more information on Vision go to Redrow.co.uk.

To find out about the FTBI log on to Myftbihome.co.uk.