New initiative set to help first time buyers

Intermediate rent (IR) or Rent to HomeBuy is to play a bigger role in the future business development of one of the region’s biggest housing associations. Contour Homes, which works across 27 local authority areas in the North West, is allowing potential purchasers to rent a new home in order to save for a deposit to buy it later.

Stephen Gallaghan from Contour Homes Property Services said: “Housing associations have been encouraged by government to develop new homes for low paid workers to buy in stages under schemes such as New Build HomeBuy (once known as shared ownership).

“However, due to the current financial climate, potential purchasers are having real difficulty accessing mortgages. This means that many first time buyers and key workers are unable to buy even a share in a home and the New Build HomeBuy scheme is currently not an option for the very people it is designed to help.”

Social housing providers like Contour Homes now find themselves looking for new ways to help first time buyers, who have a desire to own their own home.

Stephen adds: “As part of our service excellence commitment we are now offering all of our New Build HomeBuy schemes to potential purchasers who can rent the property, whilst saving towards buying their share in the near future when they will be in a better position to access a mortgage.”

The Rent to HomeBuy scheme is specifically designed to provide those people in housing need with an opportunity to live in a new property but pay a rent which is 20% below the comparable market value of the private rented sector. It is hoped that people will use this 20% to save up a deposit. This will put them in a better position to access a mortgage later and they can go on to buy a share of their new home through New Build HomeBuy - realising their aspirations to own their own home.

Contour Homes currently has properties available under this scheme in Bolton, Macclesfield, Preston and Salford and include contemporary apartments as well as family homes and even bungalows.

“All properties are new build which means they are in pristine condition with many offering a high specification,” said Stephen. “People can move and be confident in the knowledge they will have a modern, maintenance-free home.

“There is a criteria of eligibility but it is relatively broad with the key factor being an ability to pay the rent and of course people must be able to afford the eventual cost of the New Build HomeBuy scheme.”

The property will be rented from Contour Homes on an Assured Shorthold Tenancy agreement for an initial six months and after this time the tenancy will be renewed as long as people can provide evidence that they are continuing to save for a deposit.

Full details, terms and conditions and application forms are available at Contourhousing.co.uk.