Almost half of first-time buyers are looking to affordable housing schemes to help them take the first step onto the property ladder.
That’s the findings of a new study by Lloyds TSB, which found that while 46% would consider using a shared equity or shared ownership scheme, one in four had already come to the conclusion that such initiatives were the only way they’d be able to buy.
Why buyers are considering affordable housing schemes
[SPOTLIGHT]Interestingly 15% said they would not have even considered such a scheme previously, but had changed their mind as a result of the economic climate.
So what’s the selling point now?
25% of respondents said that the main reason to use an affordable scheme was that it would make their monthly mortgage payments more affordable, while a further quarter argued it would allow them to buy in an area that would otherwise be out of reach.
The different types of affordable housing schemes
Affordable housing schemes come in a number of different forms. There are two main types: shared equity schemes and shared ownership schemes.
However, there’s also the Government’s NewBuy scheme which doesn’t really fit into either category. You can find out more about Newbuy in What is the NewBuy scheme?
More on buying a property:
What is a shared equity scheme?
What is a shared ownership scheme?
The cheapest and most expensive places to buy property
What to do when a home survey goes wrong
Threatened with repossession? What you should do