Report · Dubai Online
A Sheffield developer will be among the first in England to offer low deposits for new homeowners as part of a government initiative. Prime Minister Andy Burnham has announced help for first-time buyers with a new scheme that accepts deposits of 2.5%. There are also loans on offer with 20% of the value of a newbuild property to help with the purchase.
Development company Fortuna Terra said their new apartments on Commercial Street in Sheffield city centre would be available via Your First Home. The developer decided to take part as it found many prospective buyers were relying on parental help to raise a deposit, despite their salaries being high enough to cover mortgage repayments. Founder and development director Freddie Porter said: "People have been so reliant on the 'Bank of Mum and Dad', and are finding it more and more difficult to afford things with the cost of living.
"A lot of people can actually afford home ownership, they just can't afford to save for the deposit. Rents are really high and a mortgage is possible for a lot of people, but what's challenging is saving for the deposit. "The government's current Help to Buy scheme offers 5% and but this is 2.5% and that saving could be huge for some people.
"Home ownership is something we should all be able to afford, so this potentially saves years for new buyers to get on the housing market." Fortuna Terra specialises in bringing empty buildings back into use. Commercial House, an old office block, is being converted into 43 apartments, with between 10 to 15 available for first-time buyers under the scheme. The starting price for a one-bed is £160,000 while two-beds are around the £250,000 mark.
Porter added: "From our perspective it opens up a new demographic of first-time buyers. We are heavily involved and really invested in Sheffield. "In Sheffield there are not that many newbuild apartments becoming available in the city centre.
"We love the city, it has great potential and the opportunity to help new people purchase our apartments is something we want to help with." The Conservatives warned that the policy would leave first-time buyers taking on more debt and taxpayers would be "picking up the bill for months". More details are to be announced in October's budget. Funding for the Your First Home scheme is expected to come from reprioritising government existing budgets, but housing developers will pay towards the running costs.
Ministers have not yet confirmed whether there is an age restriction or a cap on the price on the value of the property.
Source: BBC
