HomeBuy Options
This page will give you general information regarding the HomeBuy schemes. Use the links to the Housing Association websites to find out about specific schemes in the area of your choice.
What is HomeBuy?
HomeBuy is a range of schemes to help people who would not normally be able to buy a home to do so. HomeBuy enables you to part buy, part rent a new or older home and pay a subsidised rent on the part owned by the housing association. At a later date, if you want to you can buy the rest of your home outright. The more of your home you own the less rent you pay and if you buy your home outright then you will not need to pay any rent at all.
Schemes available are:
Do I qualify for HomeBuy?
To qualify for HomeBuy you must be in permanent employment and be in a position to raise a mortgage for the part you are buying. You should be earning at least £18,000 - £60,000 although some properties or schemes may allow for a lower income depending on the amount of savings you have. However, you may not qualify if the association feel that you earn sufficient to enable you to purchase a home outright without assistance .
There are some initial costs involved in buying a shared ownership property just as there are when buying on the open market. Therefore you should have between £2,500 - £5,000 in savings before applying. (dependant on scheme)
Most first time buyers can take advantage of Homebuy if they cannot afford to buy a home on the open market. Priority is given to:
- Existing council and housing association tenants
- People registered as priority need on Councils housing register
- First time buyers
- Public sector key workers
Even if you have owned a home before, you may be able to buy through Homebuy if:
- You owned a home with a partner and that relationship broke down
- You need to move because of job relocation; or
- You are already a shared owner who needs to move, and you fulfil all our other criteria.
How do I apply for HomeBuy?
You should apply directly to Moat, the local homebuy agent for the area. Moat can be contacted on 0845 359 6161. Click here for further information and FAQ'S.
Click here to view the Homebuy leaflet (444kb)
Homebuy Direct
Homebuy direct is the latest addition to the government’s range of low cost homeownership products. It’s designed to help first-time buyers get a foot on the housing ladder, and revive the housing market.
Eligible buyers can get an equity loan of up to 30 per cent of the price of the home they want to buy. This is paid by the government, through the Homes and Communities Agency, and the developer. Buyers have to purchase a home on a new development of 1.75%.
The loan is free for five years, with a fee charged from year six onwards. If the buyer sells the home, they have to pay back the money from the proceeds. If the home has gone up in value their share of the loan increases proportionally, but if it goes down the government and developer – and taxpayer – lose out. Buyers can pay off the equity loan by buying greater shares at market rate.
New Build HomeBuy
New homes are built by housing associations for part buy/part rent (shared ownership) through new build HomeBuy. Homes are usually sold to applicants with a 50% share in the property but other shares between 25% and 75% may be available. An affordable rent is paid to the housing association on the remaining share.
For example:
If you purchase 50% of your home you will pay rent on the other 50% to the housing association in addition to the mortgage you pay to your lender. New homes are usually allocated to local people i.e. people who live and/or work locally or who have local family connections.
Some new homes are reserved specifically for key workers.
What are my options after buying through New Build HomeBuy?
You can buy additional shares at a later date until you own 100%, if you wish to. This is called staircasing and the cost of the additional shares is based on the market value of the property at the time that you purchase the shares. If you increase your share in the property, your rent is re-calculated and reduced proportionately.
If you wish to sell your property, your share is marketed for sale by your housing association to allow other people in housing need to benefit from low cost home ownership. The property is resold at the market value of the property at the time of resale.
First Time Buyers’ Initiative
This is offered by private developers on selected new homes. You will need to buy a minimum of 50% of the property, or more if you can afford to.
Re-sales
If any existing shared owners wish to sell their homes, The Housing Association arrange for the sale to another eligible buyer at a competitive rate.
If your application is accepted The Housing association will send you individual property details for the areas you are interested in, depending on the size of the properties available and the property size considered appropriate to your household's needs and affordability levels. To purchase a Resale property, you do not necessarily have to be living in the property's local authority area when you apply.
Homebuy Agents
HomeBuy Agents (HBAs) are appointed housing associations who provide a 'one-stop-shop' and point of contact for affordable housing options in a given area in England. They also handle the entire application process for the Open Market and New Build HomeBuy products. Interested applicants need to contact the HBA for the area where they live or if a Key Worker, for the area where they work.
View HomeBuy Agents (Open Market and New Build) from the Home and Communities webpages or www.homebuy.co.uk
Housing Associations operating Home Ownership Schemes in the Borough of Dartford
Moat Housing Association (Homebuy Agent for Kent)
Mariner House
Galleon Boulevard,
Crossways
Dartford
Kent
DA2 6QE
0845 359 6300
www.moat.co.uk
Hyde Housing
181 Lewisham High Street
Lewisham
London SE13 6AA
0208 297 1500
www.hyde-housing.co.uk
www.inplace.co.uk
Tower Homes
70 Court Road
Eltham
London SE9 5NP
0800 056 3601
www.lqgroup.org.uk
