Affordable homes promise fulfilled in Malvern

Having just launched the government-funded First Time Buyers' Initiative (FTBI) at its new housing development in Cleobury Mortimer, Persimmon Homes has announced the launch of the same scheme at its Malvern Vale development in Worcestershire.

From this month first time buyers who are finding themselves increasingly priced out of the housing market in their local area will be able to secure a property thanks to funding provided by English Partnerships, the government's national regeneration agency.

FTBI is available on a limited number of developments in the UK, which have been strategically chosen in areas where people who work locally often cannot afford to live locally, and are forced to rent or move out of the area. Local HomeBuy Agent, West Mercia, working on behalf of English Partnerships, will approve purchasers to buy and will deal with all questions concerning eligibility.

FTBI on Malvern Vale is open to individuals who live in the wider area of the town, incorporating parts of Worcestershire and Herefordshire, and currently do not own a property, including key public sector workers such as the police, nurses and teachers.

Under the Initiative, eligible first time buyers must be able to secure a mortgage which, together with the deposit, makes up a minimum of 50 per cent of the property's market sale price. The remainder is provided by English Partnerships by way of a direct payment to Persimmon. Although FTBI buyers will have a mortgage less than the full purchase price of the property, they will be the legal owner with 100 per cent title to the homes.

For the first three years buyers will only have to make their mortgage repayments and have nothing to pay on the amount contributed by the government. After that, home owners will pay an annual fee of one per cent on the amount English Partnerships funded. This fee will increase each year by a fixed percentage, reaching a maximum of three per cent after five years.

On sale of the property, home owners will repay English Partnerships' contribution by way of a share of the proceeds. The amount required will increase or decrease as the property's price rises or falls, and home owners can reduce the amount payable to English Partnerships at any time by making additional repayments of at least 10 per cent.

Alison Reading, sales director of Persimmon Homes South Midlands, comments: "Malvern Vale is one of very few developments offering the initiative in the West Midlands. We have been working closely with English Partnerships to ensure local people can buy locally and move into brand new homes that offer the best in contemporary living."

"We are offering just 20 two and three bedroom properties as part of the scheme and would therefore urge anyone looking for their first home to contact us at Malvern Vale before they are snapped up. We firmly believe that the scheme will benefit local buyers and help nurture a sustainable community," she adds.

Duncan Innes, strategic land director at English Partnerships said: "This is a golden opportunity for local people who have been priced out of the property market.

"We all know that there is an increasing gap between earnings and house prices and by reserving affordable new homes exclusively for first time buyers, English Partnerships aims to help as many people as possible to take their first steps towards full home ownership."

Malvern Vale will feature 490 properties ranging from two bedroom apartments to two, three and four bedroom homes. Prices start from £141,995. The development is situated within the Malvern Hills, in Leigh Sinton Road, a short drive from Worcester, and offers good access to the M5.

For the full range of properties available at Malvern vale or to find out if you are eligible for the FTBI, log on to Persimmonhomes.com to request a brochure.